China Prevents Tencent From Merging With Two Biggest Video Game Streaming Companies

China prevents Tencent from merging with the two biggest video game streaming companies.

The Chinese government continues its obstacles to the country’s technology companies. This Saturday the stock market regulator has blocked the merger of Tencent with the two largest video game streaming companies in the country, which would have formed a company with a value of 5.3 billion dollars on the stock market.

Tencent already owns 36.9% of Huya’s shareholding and a third of DouYu, which currently account for 70% of video game views, the reason the Chinese regulator alleges to prevent the merger. Thus, the State Administration for Market Regulation points out that the merger with Tencent would strengthen its dominant position by having 40% of the market share in the online gaming segment.

“Taking into account factors such as revenue, active users, livestreaming resources and other key indices, we can expect a merger to eliminate or restrict fair competition,” said Zhang Chenying of AERM.

China prevents Tencent from merging with the two biggest video game streaming companies.

The Chinese government continues its obstacles to the country’s technology companies. This Saturday the stock market regulator has blocked the merger of Tencent with the two largest video game streaming companies in the country, which would have formed a company with a value of 5.3 billion dollars on the stock market.

Tencent already owns 36.9% of Huya’s shareholding and a third of DouYu, which currently account for 70% of video game views, the reason the Chinese regulator alleges to prevent the merger. Thus, the State Administration for Market Regulation points out that the merger with Tencent would strengthen its dominant position by having 40% of the market share in the online gaming segment.

“Taking into account factors such as revenue, active users, livestreaming resources and other key indices, we can expect a merger to eliminate or restrict fair competition,” said Zhang Chenying of AERM.

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