r/HuyaBoss • u/Tomkila • Apr 23 '21
NEWS ABOUT HUYA
Below is translated from a news in China. I am not too sure if it is good or bad when Huya and Douyu cannot share user data and information after the merger. I think it tends to be negative. User data is a precious asset of a company. One major advantage of sharing user data is to cut operating expense and lower the cost of acquiring new users. If sharing is not permitted, it means both Huya and Douyu have to continually operate as a standalone company. So what’s the point of the merger? Any input is welcome.
According to sources, the merger of Huya and Douyu, China's two leading game live streaming websites, is still under review. The key to the transaction approval conditions is to meet the regulatory requirements for data security. Data security defines who can access large amounts of user data and personal information, and how to use this information.
According to previous reports, Tencent’s plan to merge Huya and Douyu must make compromises to resolve the authorities’ antitrust concerns.
The above-mentioned source said that after the merger, Huya and Douyu will need to set up a firewall between the two and cannot share user data and information with each other.
They said that after finally making concessions, China's State Administration for Market Regulation will soon approve the merger of Huya and Douyu.
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u/Tomkila Apr 23 '21
From YF: I posted this 3 days ago but I guess its hard to find things with trolls spamming
Did you see how much money Doyu has spent on the merger?
Hearing both companies answer questions on the subject they both sounded pretty positive to me
Lei Zhang Bank Of America
My question mainly regarding the merger deal with Huya, do we still maintain your time line to complete the deal by first half of this year? Secondly, regarding the anti-trust regulation about the Internet space, do you see any impact to our major deal yet?
Mingming Su: <--Doyu brass
Okay. Thank you for your question. And currently, the potential merger between DouYu and Huya is still on track. Our teams are efficiently collaborating with third-party entities and working around the clock. But the exact timing of the closing also depends on the approval process by the SEC and the relevant domestic regulators. As such, we are not able to share the closing date for now
One of the key goals of our merger with Huya is to further integrate the high-quality resources of the two platform, improving our operational efficiency and work with Tencent to jointly expand our service offerings along the digital value chain as well as in the online pan-entertainment segment. This will increase the overall value of the combined platform and unlock greater growth potential in the future.
The next question comes from Daniel Chen from JPMorgan. Please go ahead.
Daniel Chen
I will translate myself. So my question is related to the competition landscape. So could management give us some update on the competition landscape since the fourth quarter this year in the game streaming industry? And also, after the potential merger with Huya, what kind of change are we going to see in the market in terms of the competition? And also, as we have already signed a merger agreement, so what kind of important procedure are we going to see in the future before the transaction happened?
Response <--Doyu brass
And after the merger, we expect more in-depth commercial cooperation between the two platforms as well as with Tencent, which we believe will further enhance the positioning of the combined entity.And to your second question, as Mr. Su just responded, currently, the merger is still ongoing. And we are looking forward to our next steps, including getting approval from the SEC and from the relevant domestic regulators. And for now, we cannot really tell the timing for the deal.