Huya and Douyu Merges through Tencent

Game live broadcast platforms Douyu and Huya announced that they have formally accepted the invitation from major shareholder Tencent for a strategic merger.

Douyu and Huya are both leading game live broadcast platforms in China.

According to the financial report for the second quarter of 2020, the average monthly active users of the two major game live broadcast platforms in the second quarter both exceeded 160 million, and their single-quarter revenue exceeded $371.6 million.

Judging from the financial report data disclosed by the two, the monetization process of game live broadcast has entered a bottleneck period from its rapid development phase; after this merger, the market value of the new company is expected to exceed $10 billion.

Huya and Douyu accounted for nearly 80% of the market share in China’s game live broadcast industry.

However, as rivals such as ByteDance and Bilibili enters the game live broadcast track, the game live broadcast industry is facing increasingly aggressive competition from short video platforms and PUGC platforms.

2020 is a year of critical growth for the global game-related industries. In the first quarter alone, the actual sales revenue of the mobile game market was $8.2 billion, accounting for 75.64% of the overall revenue, showing an increase of 37.63% from the previous quarter and a year-on-year increase of 46.25%.

In the first half of 2020, the actual sales revenue of China’s self-developed games in the overseas market reached $3.7 billion, with a year-on-year increase of 36.3%, achieving rapid growth.

Among the major overseas revenue distributions, the US’s revenue accounted for 28.2% and Japan’s revenue accounted for 23.3%, South Korea’s income accounted for 10.0%, collectively accounting for 61.5% of global revenues.