China’s antitrust watchdog to block Tencent’s merger of Huya and Douyu
- Tencent has failed to come up with sufficient remedies to meet SAMR requirements on giving up exclusive rights, according to sources familiar with the matter
- The internet giant recently withdrew the original merger application and refiled it to the SAMR
Tencent has failed to come up with sufficient remedies to meet the State Administration for Market Regulation’s (SAMR) requirements on giving up exclusive rights, said two of the people.
The people declined to be named as the information is private.
Tencent – China’s number one video game and social media company – Huya, Douyu and the SAMR did not immediately respond to Reuters' requests for comment.
Huya and Douyu are ranked number one and number two, respectively, as China’s most popular video game-streaming sites, where users flock to watch esports tournaments and follow professional gamers.
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Tencent is Huya’s biggest shareholder with 36.9 per cent and also owns over a third of Douyu, with both firms listed in the United States, and worth a combined US$6 billion in market value.
Reuters reported in March, citing people with knowledge of the matter, that Tencent was having to offer concessions in a plan to merge Huya and DouYu to resolve antitrust concerns.