After years of rivalry, it seems the merger between China’s two top game streaming platforms, Huya and Douyu, is only a matter of time.
Sources told 36Kr that Tencent’s investment team has already met with senior executives from both Huya and Douyu to discuss the merger. While no specific dates or details have been confirmed, the deal appears to be drawing closer.
When reached for comment, Douyu stated that there were no plans to merge with Huya and that their cooperation remains strictly business as usual. Huya has yet to respond.
Rumors of a Huya-Douyu merger have been circulating for a while.
In February, reports suggested the two companies were merging, though Douyu denied the claims, stating that their partnership was limited to business cooperation. Huya gave no clear response. Previously, the companies were set to merge under Tencent’s guidance, but the deal was blocked by China’s State Administration for Market Regulation for allegedly violating the country’s anti-monopoly law.
This time around, the situation feels different. As game streaming traffic consolidates around major platforms, a merger between Huya and Douyu seems less about competition and more about survival.
For game developers, live streaming has become both a revenue source and a crucial channel for game promotion.
Tencent’s Huya and Douyu, along with NetEase’s CC, Bilibili, and Douyin’s growing game streaming service, play essential roles. While these platforms don’t generate as much direct revenue as the games themselves, their impact on game traffic and reputation is vital.
Yet Huya and Douyu, once the industry’s leaders, have struggled to maintain momentum as their revenues continue to decline.
In January, Tencent opened up Honor of Kings streaming rights to Douyin. Before that, Zhang Daxian, one of the game’s most popular streamers, had already begun streaming on Douyin. Earlier still, Zhang’s debut on Douyin featured Tencent’s Dream Star. In August, Douyu’s top Dungeon & Fighter streamer, “DNF Yige,” also moved to Douyin.
The loss of exclusive streaming rights and key streamers like Zhang Daxian and DNF Yige has weakened what was once Huya and Douyu’s moat.
This decline is starkly reflected in their financials: Douyu’s revenue has shrunk from RMB 9.6 billion (USD 1.3 billion) to RMB 7.1 billion (USD 994 million) over the past three years, while Huya has recorded 11 consecutive quarters of declining revenue. Both companies’ stock prices have dropped by more than half since their 2021 peaks. Once dominant players, Huya and Douyu have fallen far from their former heights.
The struggles don’t end there. Both platforms have faced ongoing turbulence throughout the year. A steady decline in active and paying users has led to reports of controversial content surfacing on both platforms.
Earlier this year, Douyu’s CEO, Chen Shaojie, was arrested on charges related to illegal gambling, sending shockwaves through the company. Meanwhile, Huya’s new chairman, Lin Songtao, announced a strategic pivot, unveiling a three-year plan focused on game distribution, virtual goods, and advertising—an acknowledgment that game streaming alone can no longer sustain growth.
While the revenue potential of game streaming may be limited, these platforms remain indispensable as key channels for content distribution, making them battlegrounds for major players.
In stark contrast to the decline of Huya and Douyu, platforms like Douyin and Kuaishou have rapidly expanded, especially in the gaming space.
Tencent’s decision to grant Honor of Kings streaming rights to Douyin in January marked a turning point, accelerating Douyin’s growth in live streaming.
Li Xiaolong, a Douyin streamer, told 36Kr that, this summer, Tencent gave Honor of Kings streamers extensive support, including quick match join-ins, bonuses, and recruitment programs—key policies that boosted his and his guild’s success.
According to LatePost, ByteDance’s live streaming revenue in China exceeded RMB 130 billion (USD 18.2 billion) in 2022, making it the company’s second largest source of income after advertising. Since mid-2023, Douyin has continued signing major streamers like Feng Timo and Ke Jie, further cementing its position.
Meanwhile, Kuaishou reported RMB 9.3 billion (USD 1.3 billion) in Q2 live streaming revenue—far surpassing the combined earnings of Huya and Douyu. While this includes non-gaming content, Kuaishou has also seen a 50% increase in signed guilds and a 60% increase in streamers compared to last year.
Across the industry, live streaming resources continue to consolidate. Tencent’s Now, which had operated for more than seven years, shut down on December 26, 2023.
Given these shifts, it’s unsurprising that Tencent is consolidating its resources.
In March, gaming media outlet Jingke reported that Huya, Douyu, and Tencent’s WeChat Channels appeared to be collaborating, as a popular Honor of Kings streamer’s content was broadcast almost simultaneously on both Huya and WeChat Channels. While this collaboration has yet to be rolled out on a larger scale, Tencent’s intentions are clear.
Should the Huya-Douyu merger materialize, Tencent will be well-positioned to strengthen its foothold in the game streaming industry.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Lan Jie for 36Kr.