Chinese competition regulator to block Tencent merger in video games – sources
July 5 (Reuters) – China’s competition regulator set to officially block plans by Tencent Holdings Ltd (0700.HK) to merge the country’s two main video game streaming sites, Huya (HUYA.N) and DouYu, three people familiar with the matter told Reuters. .
Tencent has not found sufficient remedies to meet National Market Regulatory Administration (SAMR) requirements for relinquishing exclusive rights, two people said.
The internet giant recently withdrew the merger request for antitrust review and resubmitted it after SAMR told the company it could not complete the merger review within 180 days of filing. first filing, said one of them and a separate person.
The individuals declined to be named because the information is private.
Tencent – China’s No.1 video game and social media company – Huya, DouYu and SAMR did not immediately respond to Reuters requests for comment.
Separately, Tencent’s plan to take the private search engine Sogou (SOGO.N) will be approved by SAMR this month, one of the people said. Reuters reported in April that the regulator was ready to authorize the plan. Read more
Tencent first announced plans to merge Huya and DouYu last year as part of a merger to streamline its stakes in companies, which data firm MobTech says have 80% of a market in ‘worth over $ 3 billion and growing rapidly.
Huya and DouYu are ranked # 1 and # 2, respectively, among China’s most popular video game streaming sites, where users flock to watch esports tournaments and follow professional players.
Tencent is Huya’s largest shareholder with 36.9% and also owns more than a third of DouYu, with the two companies listed in the United States, with a combined market value of $ 6 billion.
Reuters reported in March, citing people familiar with the matter, that Tencent was to offer concessions as part of a plan to merge Huya and DouYu in order to resolve antitrust issues. Read more
Reporting by Pei Li, Yingzhi Yang; Editing by Sumeet Chatterjee and Emelia Sithole-Matarise
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