Tencent pushes for creation of $10 billion livestreaming juggernaut

Tencent has gone public with its plan to merge China’s top two livestreaming platforms into an industry dominating $10 billion juggernaut with 300 million users.

In a Monday letter to Huya Inc. and DouYu International Holdings Ltd., the internet giant proposed a stock-for-stock merger. Under the plan, Huya would acquire all outstanding DouYu shares via DouYu shareholders, ex-changing their stock for an as-yet undetermined number of newly issued Huya shares.

Both companies released statements Monday saying they were considering the nonbinding proposal but no decisions had been reached. If the companies approve the plan, it may still face hurdles from China’s anti-monopoly watchdog. Tencent is the largest shareholder of both companies.