Huya and DouYu Publish 2020Q3 Financial Reports as Merger Draws Near
Huya Inc.and DouYu International Holdings Ltd.on Nov. 11 released their financial reports for the third quarter of 2020 ended Sep. 30, revealing steady growth as the merger of the two leading Chinese esport live streaming platforms draws nearer.
In terms of total net revenues, DouYu saw an increase of 37.0% to 2,546.5 million yuan in the third quarter this year and Huya witnessed a rise of 24.3% to 2,814.8 million yuan. Over the past quarter, DouYu reached a monthly active users (MAU) of 194 million with an increase of 18.6% year-on-year while Huya’s MAU reached 173 million year-over-year. The paying users of DouYu and Huya rose to 7.9 million and 6 million respectively, representing an increase of 12.7% and 13.2%.
On Oct. 12, 2020, NYSE-listed Huya jointly announced a merger with DouYu, which will delist from the Nasdaq, making Tencent, the biggest shareholder of Huya, the controller of the merged company.
As the two companies published their financial reports, DouYu on the morning of Nov. 11, Beijing time, declared to have submitted the delisting files to the U.S. Security and Exchange Commission (SEC), speeding up the merger process of the two live streaming giants. The entire delisting procedure is expected to be completed sometime in the first half of 2021.
The merger of Huya and DouYu will result in a combined market share of up to 80%, bringing together their users as well as top and middle-tier live streamers. The merger will also assemble the copyrights of a wide range of top-notch mobile games including League of Legends, Honor fo Kings, and Dota 2, giving the new company a significant edge in its competition with rival platforms such as Bilibili and Kuaishou. Joining forces will also aid the company to increase its budget for purchasing copyrights of overlapped mobile games.
SEE ALSO: Huya Merges with Douyu, Tencent Controls $10B Esport Livestreaming Mammoth
As the merger cools down and eventually eliminates competition between Huya and DouYu, the merged company will shift energy to further widen their user base, while also exploring new sectors such as live streaming e-commerce, gaming competition and paid live streams. Expansion into these new sectors is likely to bring about an increase in profits — a welcome development for the company as current financial reports reflect only a mild growth in new users.