China’s SAMR rejects Tencent’s $5.3bn Huya, DouYu merger deal

China’s State Administration for Market Regulation (SAMR) said that it will block Tencent Holdings’ planned $5.3 billion merger of rival Chinese video game streaming sites Huya and DouYu citing antitrust concerns.

Tencent holds takes of 36.9% and 33% in Huya and DouYu, respectively. The merger of the two video game live streaming platforms announced in 2020 would help the Chinese tech conglomerate in streamlining its stakes in the two firms, reported Reuters.

According to SAMR, the combined market share of Huya and DouYu in the video game live streaming industry will be more than 70% and their business combination will consolidate the dominance of Tencent in the market. Tencent is already said to have a market share of more than 40% in online games operations.

China’s SAMR rejects Tencent’s $5.3bn Huya, DouYu merger deal. Photo courtesy of Josephua/Wikipedia.org.

Tencent stated: “Will abide by the decision, comply with all regulatory requirements, operate in accordance with applicable laws and regulations, and fulfill our social responsibilities.”