Tencent shuts down rival to Amazon Twitch after China blocks key merger
Tencent tried to make a streaming gaming giant by combining Huya (a company it holds a large stake) and DouYu (two companies it owns). The deal was stopped by Chinese regulators in 2021. Tencent shuts down Penguin E-Sports’ live game streaming service, months later.
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TencentMonths after Beijing was forced to close down an important merger, the company is now shutting down its streaming video platform.
Tencent stated that Penguin Esports will cease to exist on June 7.
Tencent’s Penguin Esports, which is similar to Amazon’s Twitch hosts livestreams for professional gaming tournaments as well as other game-related content. Tencent is a major online gaming player and aggressively pursues professional gaming as an area for potential revenue streams.
It is the latest blow to their ambitions. This comes after Chinese regulators had blocked a merger that could have transformed Tencent into the biggest game streaming player in the world.
2020 Tencent proposed merging Huya and DouYuIt also owned substantial shares in two streaming services that live games. Tencent had planned to transfer its Penguin Esports branding under the combined company, which would have put the value of the new company at $6 billion.
However, last year was a great one. Chinese regulators blocked the deal over antitrust concerns.
Tencent announced that it will stop new registrations for Penguin Esports starting Thursday. The app will cease to be available in app stores on June 7th and the servers of Penguin Esports will also stop working.
Tencent invests in areas such as e-sports, but Chinese regulators tightened gambling regulations to prevent young users from becoming addicted. cutting down the amount of time kids under 18 can play onlineNew titles can be approved and frozen.
Tencent reported that this is what Tencent feels. slowest quarterly revenue growth on recordThe fourth quarter was the most successful in last year’s fiscal year.