Beijing’s decision to block Tencent’s Douyu-Huya merger deal marks end of freewheeling Internet era in China


By Josh Ye

Decision to reject the Douyu-Huya merger, which would have created a video game streaming behemoth worth more than US$10bil, sets a precedent. Analysts say blocked merger may force Tencent to sell off its stake in one of the two streaming companies, given ongoing antitrust regulation risks. — SCMP

The Chinese government had never said no to a merger deal in the country’s technology sector until two weeks ago when the State Administration for Market Regulation (SAMR) blocked Tencent Holdings’ plan to merge Douyu and Huya, two video game livestreaming websites it controls.

Analysts says Beijing’s veto is a clear sign that the Chinese authorities are no longer shy to act on antitrust issues, putting an end to a freewheeling era in which Big Tech companies were able to engage in aggressive merger and acquisition activity to achieve market dominance.

Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Tech News

China’s richest man berates PDD, ByteDance for months of misery
WhatsApp rolling out transcription for voice messages in multiple languages
The sky's the limit for Bluesky
Two decades of Nintendo's top-selling DS console
ChatGPT's Advanced Voice Mode is coming to web browsers
Elon Musk blasts Australia's planned ban on social media for children
Bitcoin's wild ride toward $100,000
OpenAI considers taking on Google with browser, the Information reports
One tech tip: How to get started with Bluesky
FCC proposes fining Chinese video doorbell manufacturer after security concerns raised

Others Also Read