Latest Post

How to Discover Nether Fortress in Minecraft Instagram withdraws Shop Tab To Facilitate User Knowledge Google honors NASA’s DART mission with a special animated doodle Vivo X Fold+ foldable smartphone unveiled Google on European carriers

Tencent Holdings plans to take DouYu International Holdings private. Despite the disagreements among strategy among executives at the Chinese videogame streaming firm.

Tencent is the biggest shareholder in Nasdaq-listed DouYu with a 37 percent stake. It wants to team up with at least one private equity firm for the deal. It is currently talking to investment banks.

The deal will be operational this year only.

Shares in DouYu, a game marketing and China’s No. 2 videogame streaming site, took over as much 17.6 percent on the news, closing 14 percent higher on Thursday.

Tencent Said to Makes Plans to Take US-Listed Streaming Firm DouYu Private

The company looks into the business strategy. This is after Tencent’s plans to merge it with bigger rival Huya. Regulators blocked them in July.

There were many differences among DouYu executives that whether to stick with game live streaming since its concentration is mainly on the business towards more profitable entertainment live streaming.

That tension is not finished even after DouYu co-founder and co-CEO Zhang Wenming, who had favored diversifying revenue streams, resigned last month. Doug has said Zhang resigned due to some personal reasons. Co-founder Chen Shaojie now looks after the company.

DouYu will get Private

The take-private plans depict Tencent’s desire to have a firm grip on its core gaming affiliates. This is at a time when it faces a raft of regulatory issues, said the people. These people were not authorized to speak on the matter and declined to be identified.

A 60 percent slide in DouYu’s stock price since July, giving it a market value of $717 million (roughly Rs. 5,380 crore) on Wednesday, has also meant it is attractively priced for a take-private deal, they added.

Tencent and DouYu declined the comment.

Tencent, the owner of hit games Honor of Kings and PUBG Mobile, liked other Chinese Internet firms that have been grappling with a regulatory crackdown on the sector and in the third quarter posted revenue growth of just 13 percent.

Also Read:

New iOS 15.4 : Face ID with Mask

US VidMob to hire 75 new staff in Ireland

Leave a Reply

Your email address will not be published. Required fields are marked *