Communication Author：Chendi Qian Editor：Luke Sheehan Aug 06, 2020 10:28 AM (GMT+8)

Douyu and Huya lead the game streaming market in China.Tencent has already become their largest shareholder.

Image credit: Caspar Camille Rubin/Unsplash

According to people familiar with the matter, Tencent Holdings is pushing for talks to merge China's most significant game streaming platforms, Huya and Douyu, a deal that will give it the lead in this hot arena.

This Chinese social media titan has been discussing mergers with the two companies in the past few months. However, the details have not yet been finalized, according to the sources, who asked not to be identified because discussions are private. Tencent holds 37% of Huya and 38% of Douyu, and is the largest shareholder of these two firms. And Tencent seeks to become the largest shareholder of the combined entity.

If this deal can take place, it will create a live streaming giant with more than 300 million users and a combined market value of USD 10 billion, and consolidate Tencent's leading position in China's gaming and social media fields. People familiar with the matter said that Huya and Douyu would maintain their respective platforms and brands while working more closely with Tencent's own e-sports website eGame.

Representatives of Tencent and Douyu declined to comment, and Huya's spokesperson did not respond to requests for comment.