- Shares of HUYA, operator of China's biggest online gaming platform, rocketed nearly 20% Thursday as a 13-G filing by Renaissance Technologies reported it has a 3.15% stake in HUYA.
- Later in the day, and not to be outdone, Morgan Stanley filed a 13-G disclosing a 26.2% stake in HUYA.
- RT and MS obviously took advantage of weakness in the shares after the announcement that HUYA would merge with DouYu.
- The merger was a quite complicated ménage à trois with Tencent, which will end up owning large stakes in both HUYA and DouYu.
- In addition to growing users at both HUYA and DOYU, E-sports and increasing advertising revenues are positive catalysts moving forward.
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HUYA Rockets 20% As RenTech And Morgan Stanley Take A Combined 29.35% Stake In The Company