Beijing (PingWest)—Tencent is pushing forward the merger of Douyu (NASDAQ: DOYU) and Huya (NYSE: HUYA), China's top two gaming-focused live-streaming platforms, Beijing News reported, citing sources familiar with the matter.
"The merger, proposed by Tencent, is already on the way, said the sources, adding that the deal will possibly be completed later than the end of this year or the beginning of next year.
"Prior to the merger, there will be new senior executives joining Huya, and fresh strategic goals will be established," a source from Huya told the Beijing News.
Tencent, the Chinese gaming giant, is currently the controlling shareholder of Douyu, with a stake of approximately 37.2% and is the second-largest shareholder of Huya, with a stake of 39.4%. It has assigned several senior employees of its own companies to serve as executives on these two platforms.
According to the report, this is not the first time Tencent has proposed a merger plan.
Before the listing of Douyu in the US, Tencent tried to bring about the merger of Douyu and Huya, due to concerns about the competition between Douyu and Huya in the stock market. However, Li Xueling, chairman of JOYY (NASDAQ: YY), the company which incubated Huya, refused to give up the control power of Huya. And Douyu's management also expected an independent listing.