- HUYA’s merger with DouYu will create a live game streaming behemoth with dominant market share, with a major strategic advantage over peers, leadership in technology, and better access to top streamers.
- Financially, the combined company will have some easy-to-measure cost advantages, but more importantly, the combination will ease on the aggressive bidding for streamers and other resources, instead try to ride and monetize the recent surge in consumer interest.
- Looking at the price correction in HUYA stock, some may conclude that the market didn't like the deal. On the contrary, the correct conclusion may be that the market failed to acknowledge the combination, leave alone recognizing the power of the combination.
For further details see:
HUYA And DouYu Combined Is More Than Just A Monopoly