China blocks Tencent’s $5.3B video game merger
China’s State Administration for Market Regulation (SAMR) announced that it has blocked Tencent Holdings Ltd.’s plans to merge Huya and DouYu, two of the country’s largest video game streaming platforms.
The regulator blocked the merger over antitrust concerns, saying that, if the merger were to go through, Tencent would have a domestic market share for video game streaming services somewhere between 80% and 90%. Moreover, the combined worth of both platforms would have been around $5.3 billion and the watchdog noted that the merger would “further strengthen Tencent’s dominant position in the video game live-streaming market.”
Finally, SAMR commented on the effect that the merger would have on users, saying that it would have “the effect of eliminating or restricting competition”, adding that it “is not conducive to fair market competition.”
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