China keeps slamming brakes on its tech giants 😷

China keeps slamming brakes on its tech giants 😷

What Happened — After Didi, Chinese regulators returned to Tencent, blocking the company’s merger of two video game streaming sites Huya and DouYu — on antitrust concerns.

Worth a combined $5.3 billion, both Huya and DouYu own about 80% of the game streaming market in China, and Tencent, a major stakeholder in both, was pushing for a merger to save costs and streamline earnings.

Regulators’ stand — the deal will increase Tencent’s market share in gaming, to a point where Tencent can monopolize the emerging space going ahead. A meek, and bruised Tencent now plans on complying, dropping the merger idea completely. 🤧

Oh and while we’re here,

China’s now enforcing a comprehensive “cybersecurity audit” on any business from Chinese territory looking to IPO in the US — very likely a move to create an intentionally onerous process that ends up keeping Chinese businesses within the border.