China’s Joyy Accuses Muddy Waters Report of ‘Ignorance’
- Chinese company says report full of errors, generalizations
- Joyy shed $2 billion of value after report called it a fraud
Muddy Waters had called YY a “fraud tech company,” casting doubt over its sale to Baidu for $3.6 billion.
Photographer: Justin Chin/BloombergThis article is for subscribers only.
Chinese livestreaming video giant Joyy Inc. dismissed Muddy Waters’s allegations of fraud Thursday, saying the short-seller’s report was replete with errors and demonstrated an ignorance of the red-hot industry.
Joyy, which is in the process of selling its YY Chinese business to search giant Baidu Inc., said the 71-page report issued Wednesday was confusing and full of generalizations about a format it helped pioneer, now one of the fastest-growing segments of the world’s largest internet arena.