Streaming platforms Huya and DouYu are merging

Chinese streaming platforms Huya and DouYu have entered into a merger agreement.

The deal is expected to close within the first half of 2021 and will see DouYu become a subsidiary of Huya.

"Huya will acquire all the outstanding shares of DouYu, including ordinary shares represented by American depositary shares, through a stock-for-stock merger," reads the announcement.

Upon completion of the merger, chief executives Rongjie Dong and Shaojie Chen of Huya and DouYu, respectively, will become co-CEOs of the combined company. Furthermore, the board of directors members from Huya will continue to serve after the merger goes through.

Coming together

The idea of a merger between the live streaming giants was first brought forward by Tencent, who has a majority stake in Huya, and a 38 per cent hold in DouYu after it invested $632 million in 2018.

Once the merger has been completed, Tencent will hold a 67.5 per cent stake in the new company.