Chinese antitrust regulator blocks Tencent's US$5.3b video games merger
China's market regulator on Saturday (Jul 10) said it would block Tencent Holdings' plan to merge the country's top two video game streaming sites, Huya and DouYu, on antitrust grounds.
Tencent first announced plans to merge Huya and DouYu last year in a tie-up designed to streamline its stakes in the firms, which were estimated by data firm MobTech to have an 80 per cent slice of a market worth more than US$3 billion and growing fast.
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$5.3 billion in market value.
The State Administration of Market Regulation (SAMR) said the decision was made after reviewing additional concessions proposed by Tencent for the merger.
Tencent filed for the antitrust review of the merger in January, according to SAMR's announcement.
SAMR said Huya and DouYu's combined market share in the video game live streaming industry would be more than 70 per cent and their merger would strengthen Tencent's dominance in this market, given Tencent already has more than 40 per cent market share in the online games operations segment.
Huya and DouYu are ranked first and second, respectively, as China's most popular video game streaming sites, where users flock to watch e-sports tournaments and follow professional gamers.
Reuters first reported SAMR's move to block the deal on Monday.
Tencent, Huya and DouYu did not immediately respond to requests for comment on the SAMR decision
Source: www.channelnewsasia.com
