Tencent’s Streaming Play

Tencent’s esports focus is getting a new boost as two Chinese streaming platforms are merging to create a $10 billion giant. Huya and Douyu — similar platforms to Amazon’s Twitch — capture a combined 80% of China’s game streaming market.

With major shares in both companies, Tencent will have more than two-thirds of voting rights following the merger. Both Huya and Douyu’s revenues have grown more than 40% this year — largely from users buying virtual gifts for their favorite streamers.

This deal further solidifies Tencent’s push into esports in an increasingly global industry. Tencent has major stakes in a variety of video game companies, including owning Los Angeles-based Riot Games and holding a 40% position in North Carolina-based Epic Games.

Game Streaming Platforms:

Huya — 168.5 million monthly users

Douyu — 165.3 million users

Twitch — More than 140 million users