Tencent beefs up game streaming arm after China kills merger

Tencent has set up a new team dedicated to product design and operations at its Penguin Esports streaming app, while disbanding a department that focused mainly on liaising with Huya and DouYu, according to sources. — Reuters

Tencent Holdings Ltd has begun re-deploying people and resources toward its own game streaming platform, after China blocked a merger that would have cemented the social media giant’s lead in a US$3bil (RM12.56bil) sector.

Tencent proposed combining investees Huya Inc and DouYu International Holdings Ltd – China’s two biggest Twitch-like services – in 2020, but the country’s antitrust watchdog rejected the deal in July after Beijing stepped up scrutiny of big tech. Now, Tencent has set up a new team dedicated to product design and operations at its Penguin Esports streaming app, while disbanding a department that focused mainly on liaising with Huya and DouYu, according to a person familiar with the matter.