Chinese esports streaming platform DouYu, which is backed by social media and gaming giant Tencent Holdings, are planning to partner with global investment company Mitsui & Co. to setup a gaming company in Japan.
Sina Finance reported that the joint company will launch in September, and look to work with popular game publishers, as well as release new games for the Japanese market. In addition, content and e-commerce platforms are also being discussed.
DouYu, like market leader and Amazon subsidiary Twitch, specialises in video game live broadcasts. It has exclusive streaming rights to 29 major tournaments in China, including League of Legends, PlayerUnknown’s Battlegrounds and DOTA2.
Founded in 2014 in Wuhan in central China’s Hubei province, DouYu listed on the Nasdaq market in mid-July, selling $775m (€691m) in stock, which gives the company a $3.73bn valuation. Shares were priced at US$11.5, the lower end of the company’s indicative range which ran to $14.
They are one of several start-ups in the Chinese live-streaming market, along with Huajiao and Huya Inc., which is listed on the NYSE.
The Japanese gaming market is worth over $12bn (€11.bn) and the esport market has grown to $660m in 2017, according to a report by Goldman Sachs.