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Huya Stock Price Rallies Premarket on Tencent Acquisition Offer

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Updated: 10 August 2020

Huya Inc (NYSE: HUYA), a leading Chinese online gaming platform today announced that it had received a preliminary non-binding offer letter from Tencent Holdings Ltd proposing that Huya and DouYu International Holdings Limited merge in an all-stock deal.

The deal would see Huya shareholders acquire all outstanding shares of Douyu Ltd, while Douyu shareholders would receive a yet to be agreed upon number of newly issued Huya Class  A ordinary shares.

The proposal comes after Tencent acquired over 30 million Huya shares from JOYY Inc., through its subsidiary Linen Investment Limited in a cash deal valued at $810 million. The deal indicates that Tencent is keen to acquire Huya Ltd or at the very least become a majority shareholder in the popular online game streaming service.

Huya share price

Tradingview chart of Huya share price 10082020

Huya shares jumped 12.3% to hit a high of $29.95 premarket before erasing most of its gains to trade 4.27% higher at $27.55.