Douyu Confirms IPO Preparation, Investment of 1B Yuan in Anchors

Douyu held its 2017 Awarding Ceremony in Shanghai yesterday. Chief operating officer Cheng Chao confirmed Douyu is preparing for an IPO in an interview.

Douyu is rumored to go public in Hong Kong, and to seek financing of $300 million to $400 million. Cheng confirmed the IPO plan, but did not disclose the listing location. A consortium led by Bank of China estimated that Douyu was valued at $10 billion in November 2017.

Douyu grew out of the gaming live broadcast industry, and it has since expanded to general entertainment. Cheng said Douyu will spend 1 billion yuan on its Star Anchor Project in 2018. The project consists of three parts: scouting talent, training and promotion.

Specifically, Douyu will conduct a systematic search of the potential anchors to form a talent pool and provide financial support for these anchors. Douyu will offer professional training and ethics education to talented hosts, provide them with advantageous resources and simplify the contract procedures.

Cheng said investment in 2017 mainly went to entrepreneurial teams that provided creative content, upstream and downstream enterprises that provided technical support and services and emerging e-sports clubs.

“In terms of publicity, we will provide different levels and appropriate channels for all kinds of anchors, and offer more opportunities outside Douyu, especially in high-end social media channels,” Cheng said.

This article originally appeared in techweb and was translated by Pandaily.