Why Huya Stock Fell Today
Shares of Huya (NYSE: HUYA) have fallen today, down by 8% as of 1:20 p.m. EDT, after JOYY (NASDAQ: YY) announced a share transfer to Tencent (OTC: TCEHY). Tencent also sent Huya a non-binding proposal letter advocating for a merger.
JOYY has sold 30 million Huya shares to Tencent for $810 million in cash, further boosting Tencent's stake in the leading video game live-streaming platform in China. The Chinese tech giant, which is already the largest gaming publisher in the Middle Kingdom, had recently secured control of Huya in a previous purchase of Huya shares from JOYY. In addition to buying shares from JOYY, Tencent has entered into a separate agreement to buy 1 million Huya shares from Huya CEO Rongjie Dong.
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Source Fool.com
