Chinese Game Streaming Firm DouYu is Backed by Tencent Filing U.S. IPO

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DouYu, the Chinese game streaming service is all set to go public. The company has filed with US Securities and Exchange Commission and is prepared to raise up to $500 million on NYSE. DouYu is the second game streaming firm that is backed by Tencent to go public in the United States. The rival company of DouYu, Huya had Tencent as one of its biggest investor and the company went has raised a whopping amount of 150 million USD in NYSE lasting in May 2018.

DouYu Received a Hefty Amount from Tencent in the name of Advertising Fees

Tencent uses these kinds of streaming platforms for advertising and marketing their new releases. The company has invested in multiple game streaming platforms that are based out in China. It has paid DouYu an amount of 27.48 million yen as advertising fees.

Tencent
Image Credits – https://gizmodo.com

Tencent is the first largest stakeholder of DouYu owning 40% of the shares and is the second largest stakeholder of Huya. Both DouYu and Huya are in a pretty fierce competition in the market. Last year DouYu was able to double its revenue by reaching $531.5 million whereas the Huya has beaten DouYu with net revenue of $678.3 million. Even Huya has also doubled its revenue last year.

DouYu is now planning to invest a good amount of money in content as it is going public. Huya has also raised an amount of $327 million this month to invest in both R&D and content. Similar to many other businesses, both DouYu and Huya are relying on quality content producers to keep the loyalty of users intact.

DouYu has noted in its IPO filing that the company is looking to explore their services in overseas markets with selective investments and organic expression.

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