Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Tencent Holdings, China’s largest gaming and social media company, is driving discussions to merge streaming platforms Douyu International Holdings (NASDAQ:DOYO) and Huya Inc (NYSE:HUYA), in a deal that, if it were to go ahead, would see Tencent take control of the market, according to reports in Reuters and the South China Morning Post.
Tencent owns 37% of Huya and 38% of Douyu and has been discussing the merger for a few months according to the reports, with Tencent looking to become the biggest shareholder of the merged companies.
Both Huya and Douyu are extremely popular video game streaming sites in China, with users flocking to the services to watch esports and professional gamers.
After the reports by both Reuters and the South China Morning Post, shares in Huya Soared premarket and are currently trading 12.07% higher at $28.14, while Douyu’s stock price has also jumped 14% to $16.97 per share.
The report by Reuters went on to say that the two firms would see them have a combined market share of 80% in China and a merger would lower costs, ease competition, and help Tencent keep rising challengers such as ByteDance at bay.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .