Chinese State Administration of Market Regulator (SAMR) has formally blocked the proposal of Tencent Holding Ltd. to merge the two popular video gaming streaming sites-Huya Live and DouYu. The above-mentioned sites are positioned at the top ranks in the list of popular video game streaming sites and in both of these, a majority of the shares are owned by Tencent. The users can watch many online sports tournaments and can also follow professional players in the field on these sites. SAMR points out that certain requirements for the merger have not been fulfilled by the company and hence, the rejection. This was after Tencent refiled the application as the initial application was not reviewed even after 180 days of its filing. SAMR claimed that the merger would not allow a fair competition in the field as Tencent would have complete control over these sites. However, SAMR approved the acquisition of the search engine Sogou by Tencent.
Tencent remains one of the biggest multinational technology conglomerates based out of China. It was founded in 1998 and engages in various internet-related services and products. Being the world’s largest video games vendor, they have made many mobile games and multiplayer online games. It has also created instant messaging apps like QQ and WeChat in China.
Tencent has responded that it will abide by the decision and work on bringing possible solutions to the problems that paved the way to the rejection of the proposal. Huya Live and DouYu have not yet commented on the rejection.
