Chinese internet giant Tencent is planning to take US-listed videogame streaming company DouYu International Holdings private due to a lack of alignment over strategy among executives, reports Reuters. Two people with knowledge of the matter said that Tencent, the biggest shareholder in Nasdaq-listed DouYu with a 37% stake, wants to team up with at least one private equity firm for the deal and is currently talking to investment banks.
It is aiming to complete the deal this year, said one of the people. Shares in DouYu, one of Tencent’s main platforms for game marketing and China’s No. 2 videogame streaming site, surged on the news, jumping 12.7% in pre-market trade.
The company has been debating its business strategy after Tencent’s plans to merge it with bigger rival Huya Inc were blocked by regulators in July last year on antitrust grounds.