Huya and DouYu Deal Comes Under Chinese Regulatory Scrutiny
Huya (NYSE: HUYA) and rival DouYu International (NASDAQ: DOYU) dominate Chinese live-streaming, owning 80% of the game steaming market between them. Their planned $6 billion merger is poised to create an industry titan.
No one will fare better than Tencent (OTC: TCEHY), as it owns a stake in both companies and will have a 67.5% voting interest in the new company after joining in the union. The merged successor company of Huya and DouYu would have over 300 million monthly active users.
However, the plans have been put in turmoil as China's regulators announced they are going to take a closer look at the merger as part of an antitrust crackdown.
Source Fool.com
