Chinese internet company Tencent has further strengthened its presence in the domestic live streaming market by making major investments in two platforms that specialise in esports.
YY, a leading live streaming social media platform in China, has said its majority-controlled subsidiary Huya entered into definitive agreements for its series B equity financing with Tencent. The total amount raised in the round is approximately $461.6m (€374.3m).
YY will retain control over Huya, but Tencent has obtained a right, exercisable between the second and third anniversary of the closing date, to purchase additional Huya shares at fair market price to reach 50.1 per cent of the voting power in Huya.
David Xueling Li, chairman and acting chief executive of YY, said: “This investment will reinforce and solidify Huya as the leader in the fast-growing game live streaming market in China.
“Supported by Tencent’s strong capabilities in game development, distribution and operation, Huya will march into a new era of building and maintaining the largest game live streaming and esports community for young generations in China.”
Meanwhile, the China Money Network website said that Tencent has also completed a $632m investment in Douyu, Huya’s major rival in the online live-streaming market.
The Technode website added that Tencent previously led a $100m series B financing round in Douyu with Sequoia and Nanshan Capital in March 2016, along with participating in a series C financing round worth around $236.5m in August 2016.