The Merger Between Huya and Douyu Could Create Enormous Shareholder Value

The planned merger of Huya (NYSE: HUYA) with Douyu International (NASDAQ: DOYU), its main rival in China's video game streaming industry, is expected to close by the first half of 2021. It will create one titanic, dominant player.

While Huya will remain listed, Douyu's shares will be delisted from the U.S. stock market. Tencent Holdings (OTC: TCEHY), which backs both Huya and Douyu, will own almost 68% of the combined entity.

Investors are set to gain from the merger, which will likely deliver enormous synergistic benefits.

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Source Fool.com