Tencent Gains Control of Huya: What Does This Mean for JOYY?
Two years ago, Tencent (OTC: TCEHY) acquired a 34.6% stake in Huya (NYSE: HUYA) ahead of its spinoff from JOYY (NASDAQ: YY). JOYY remained Huya's top shareholder, but Tencent gained the right to boost its voting stake to 50.1% anytime between March 8, 2020 and March 8, 2021.
Tencent recently exercised that option, and raised its stake to 50.1% by buying 16.5 million class B shares of Huya for about $262.6 million. That massive purchase reduces JOYY's voting stake from 55.5% to 43%. Lindong Huang, who currently leads Tencent's interactive entertainment group, was appointed as the new chairman of Huya's board. Three other Tencent executives -- Zhi Cheng, Hai Tao Pu, and Guang Xu -- also joined Huya's board.
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Source Fool.com
