Will Tencent Take DouYu International Private?

DouYu International, a company that owns a platform for computers and an application for phones that are engaged in online broadcasting of esports games in China, may become private on the initiative of Tencent Holdings Ltd. This decision was made due to the fact that some executives of a Chinese company cannot come to a consensus about the company’s business. Tencent, a DouYu shareholder with a 37% stake, is already negotiating with investment banks to complete a deal with at least one private firm. The company plans to complete the transaction in 2022.

DouYu International

The company’s disagreements revolve around the plan – to continue broadcasting games as the main business or to start broadcasting more profitable entertainment. These disputes continue even after Zhang Wenming, Douyu’s co-founder, retired last month. Currently, the business is run by another co-founder Chen Shaojie. Now the Chinese company is considered attractive for this transaction, since DouYu International has lost 60% in its value since the summer, dropping to 717M dollars. The owners of the two companies refused to give details about the deal.