Tencent bolsters lead in China’s video game live-streaming market, fending off rivals ByteDance, Alibaba
- The Shenzhen-based internet giant has paid US$262.6 million to take control of game live-streaming platform Huya
- The firm also has stakes in other major game live-streaming platform operators, including DouYu, Kuaishou and Bilibili
The billion-dollar race to become China’s Twitch and undisputed leader of the country’s fast-growing video game live-streaming market has concluded, according to analysts. And the winner is Tencent Holdings.
That followed Tencent’s move last Friday to pay US$262.6 million in cash to Nasdaq-listed social media company JOYY and take control of Huya, one of China’s largest game live-streaming platform operators. The deal, made through Tencent subsidiary Linen Investment, raised the internet giant’s stake to 36.9 per cent, up from 29.5 per cent, and increased its voting power in New York-listed Huya to 50.1 per cent.
The transaction has enabled Shenzhen-based Tencent, which runs the world’s largest video games business by revenue, to strengthen its lead in China’s game live-streaming market since it already controls Huya’s main rival DouYu, according to Ding Daoshi, director of research at internet consultancy Sootoo in Beijing.
“Tencent has closed the supply chain loop in the gaming industry,” Ding said. “It now controls the development, publishing and broadcasting of gaming content [in China].”
Hong Kong-listed Tencent did not immediately respond to questions sent via email on Tuesday regarding speculation on the potential merger of its game live-streaming platforms.
In its announcement on Friday, Huya said it will continue to operate independently and remain headquartered in Guangzhou, capital of southern Guangdong province.