Tencent plans to create a new giant in the gaming streaming market with an estimated $10 billion

Huya and DouYu companies, which are the largest players in the Chinese gaming streaming market, have announced a merger. Under the leadership of Tencent, they will create an analogue of Twitch with a total valuation of $ 10 billion.The deal is expected to close in the first half of 2021.

As a result, Tencent, which now owns stakes in Huya and DouYu, will receive 68% of voting shares. The Chinese giant will also integrate its $500 million Penguin e-Sports streaming service into the new company.

The local edition of Tech Planet reports that the new company will be named Husha (translated as “tiger shark”), which is estimated at $10 billion (Bloomberg gives an estimate of $ 11 billion). The deal will allow Tencent in the future to create a Chinese equivalent of Twitch, which is currently blocked in the country.

At the same time, after the merger, the company will focus not only on the service for game broadcasts. Even before the deal, Huya and DouYu planned to enter the cloud gaming market and now they will surely continue to develop in this direction.

Before the merger, Huya and DouYu were valued at $5.8 billion and $4.7 billion, respectively. Together, the companies controlled about 80% of the Chinese game streaming market (about 300 million users).

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