Tencent Has Become the Controlling Shareholder of HUYA

April 16, 2020
Tencent Has Become the Controlling Shareholder of HUYA

Recently, HUYA has announced that Tencent has formally become the controlling shareholder of HUYA. Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings, sent a notice to HUYA and Huanju group saying it had exercised its shares to purchase 16,523,819 class B ordinary shares of HUYA for about $262.6 million in cash.

After the deal, Tencent has become the largest shareholder with voting rights increased to 50.1%. Dong Rongjie, the company's Chief Executive, announced the news in an internal letter, saying the company would continue to operate independently after joining the Tencent family.

After joining the Tencent family, the company will continue to maintain independent operation, and continue to maintain the development momentum of our US-listed enterprises. Our management, who has experienced the test of the market and can get results, will continue to move forward with you,” says Rongjie in the letter.

While taking full advantage of our leading position in the live broadcasting industry, we will continue to lead the transformation of the online live broadcasting industry in China together with other partners in Tencent’s ecosystem.”

In the letter, Rongjie also talks about the history of growth and development of HUYA, how it endured and witnessed many crucial moments on its way to becoming the leader in the video live streaming, including the live game streaming.

Rongjie says that they will continue to strengthen their advantages in live game broadcasting using the established strategy, deepen the construction of e-sports and e-sports communities, and continue to promote the expansion of diversified contents.

Huya Live is a Chinese video live streaming service, and it is one of the largest of its kind in China. It is similar to other streaming services like Twitch, and it mostly focuses on video game live streaming as well as official broadcasts of esports competitions. It also operates in Southeast Asia as NIMO TV.