Tencent Restarts eGame Site After Halt of Huya-Douyu Game-Streaming Merger
In mid-August, Tencent‘s Interactive Entertainment Group (IEG) announced a series of departmental and personnel adjustments to set up an eGame Center, which would be fully responsible for product R&D, operation and promotion of eGame, Chinese media outlet Jiemian News reported on Thursday.
In October last year, a merger agreement and plan signed by Huya and Douyu included clauses related to eGame, as Tencent planned to transfer the rights and interests of its game streaming business to Douyu for the price of $500 million.
On July 10 this year, China’s State Administration for Market Regulation announced the blocking of the Huya–Douyu merger after conducting an antitrust review.
After the regulatory authorities stopped the merger, the plan related to Tencent‘s eGame also ran aground. Tencent re-established its eGame Center this time, showing its obvious intention to revive its own game streaming site.
SEE ALSO: China’s Top Market Regulator Bans Merger of Tencent’s Video Game Streamers Huya, DouYu
According to the report by Jiemian News, considering the national regulatory policy and the return on capital investment, Tencent would probably not acquire Douyu after also holding Huya. Resurrecting eGame could ensure Tencent has enough influence in the game streaming industry.
Huya and Douyu are the two largest game streaming firms in China. Huya has a market share of over 40% while Douyu has over 30%. Furthermore, Tencent already has separate control over Huya and joint control over Douyu. In May 2018, Huya landed in the U.S. stock market to became the first listed company in the live game streaming industry. In April 2019, Douyu submitted a prospectus for a listing in the U.S. market.