DouYu International Holdings Limited (NASDAQ: DOYU), a pioneer in the esports value chain, announced that following SAMR’s antitrust review, it terminates the merger agreement with HUYA Inc.
Authority Review leads to terminates agreement: SAMR (The State Administration for Market Regulation of the People’s Republic of China, in its announcement, stated its decision to disallow the proposed merger between DouYu International and HUYA Inc. The terminates of the agreement follow SAMR’s antitrust review, and the company fully abides by the laws and regulations. It will continue to comply with all the regulatory requirements in the future and fulfill its social responsibilities. Following the SAMR’s review, all the agreements or ancillary arrangements completed or contemplated during the merger dated October 12, 2020, were terminated immediately.
Cash Dividend canceled: DouYu, in his past correspondence with the investors, had announced that in accordance with the merger, the board had approved a cash dividend of $60 million that was to be paid at the time of the closing of the merger. However, following the announcement of the termination of the merger (proposed), the DuYu board recently approved the cancellation of the cash dividend. Concurrently, on July 12, 2021, Tencent and Mr. Shaojie Chen entered into a termination agreement pertaining to the Share Transfer Agreement, dated August 13, 2020, among the same parties and all ancillary agreements contemplated in the past few months, were terminated with the immediate effect.
The company further stated that DouYu would continue to enhance its leadership in the eSports value chain in China, video and other content, and enrich quality live streamlining and vibrant gamer community. DouYu has grown with the collaborations with the partners or participants across the eSports value chain. As a result, the company has gained access to various eSports premium content, which further attracts viewers and enhanced user experiences. In addition, the company platform brings together a deep pool of live streamers.