In this article, I will discuss the details and history of the option, whether it makes sense for Tencent (TCEHY) (TCTZF) to exercise and the implications on Huya (HUYA), its current parent JOYY (YY) and Douyu (DOYU).
Tencent's $461.6 Million Investment In Huya
On March 8th, 2018, Tencent announced a $461.6 million investment in YY's game live-streaming subsidiary Huya. In addition to the investment, Tencent obtained a right to purchase additional Huya shares at a fair market price to reach 50.1% of the voting power, exercisable between the second and third anniversary of the closing