Shares of Huya (NYSE: HUYA) have dropped today, down by 10% as of 3:10 p.m. EST, after a previously announced joint venture with MTG fell apart. MTG had hoped to gain a foothold in China's booming esports and live-streaming market through the partnership with Huya.
The companies had signed an agreement last September that would have formed a joint venture while giving Huya a minority stake in MTG portfolio company Turtle Entertainment (ESL). Huya, which is backed by Chinese tech giant Tencent, was planning to invest $30 million in ESL. MTG announced today that following due diligence, both parties have mutually agreed to terminate the deal.
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Source Fool.com