Tencent Beefs Up Game Streaming Arm After China Kills Merger
- It’s begun re-deploying people toward an inhouse streaming app
- China’s antitrust watchdog is stepping up deals scrutiny
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Tencent Holdings Ltd. has begun re-deploying people and resources toward its own game streaming platform, after China blocked a merger that would have cemented the social media giant’s lead in a $3 billion sector.
Tencent proposed combining investees Huya Inc. and DouYu International Holdings Ltd. -- China’s two biggest Twitch-like services -- in 2020, but the country’s antitrust watchdog rejected the deal in July after Beijing stepped up scrutiny of big tech. Now, Tencent has set up a new team dedicated to product design and operations at its Penguin Esports streaming app, while disbanding a department that focused mainly on liaising with Huya and DouYu, according to a person familiar with the matter.