Chinese live-streaming platform Huya yesterday announced that it has pocketed $461.6 million in its series B financing round led by Tencent, marking Tencent’s second major investment in the live-streaming sector within one day after it revealed an RMB 4 billion ($630 million) investment in game streaming platform Douyu .
Huya’s financing round was completed yesterday. After the completion of the transaction, YY, the parent firm of Huya, maintains control over Huya. However, Tencent has also obtained the right, exercisable between the second and third anniversary of the deal’s closing date, to purchase additional Huya shares at fair market price to reach 50.1% of the voting power in Huya.
Huya has also announced plans to file for US IPO and has submitted a draft registration statement on a confidential basis to the US Securities and Exchange Committee for a possible listing in the US market.
“We are very excited about Huya’s completion of series B equity financing from Tencent,” said David Xueling Li, Chairman and acting Chief Executive Officer of YY, in a press release. “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 e-sports community for young generations in China.
Meanwhile, Huya remains a major asset of YY, continuously bringing significant value for YY shareholders,” he said.
It’s worth noting that Tencent is making efforts to establish influence in the live streaming sector in China. Tencent has poured money in Douyu for three times. It led a $100 million series B financing round in Douyu with Sequoia and Nanshan Capital in March 2016. Tencent has also in Douyu’s series C financing round worth RMB 1.5 billion ($236.5 million) in August 2016.
Original news is from Technode.