China’s DouYu Kills Deal With Huya in Blow to Tencent

Photographer: Qilai Shen/Bloomberg
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DouYu International Holdings Ltd. has terminated a merger with rival Huya Inc., formally nixing a deal that would have helped cement Tencent Holdings Ltd.’s lead in video game-streaming.

DouYu announcedBloomberg Terminal its withdrawal after regulators rejected the deal over the weekend, saying it would strengthen Tencent’s dominance in Chinese game streaming and give it an anti-competitive edge. Huya and DouYu together control more than 80% of the market based on active users, the State Administration for Market Regulation said in a statement Saturday.