Feirre wrote a post · May 5, 2023 02:19

Tencent acquires another 16 percent stake in Huya from huya

This brings tencent's stake to around 64 percent in Huya.

This brings tencent's stake to around 64 percent in Huya. Translates to around 5.74 USD per share based on my quick computation. Didn't really check the figures thoroughly so readers should investigate and check on your own.

It will not be so simple for Tencent just to acquire another 16 percent stake in Huya at an average cost of 5.74 USD per share. It is still cheaper than its book value per share but it shows that in order for Tencent to devote more resources into Huya, it's economic stake in Huya has to rise to over 60 percent.

Secondly, I do not think Tencent will delist Huya. Given that it's listing status will prove useful for capital realisation in future, what Tencent is likely going to do is potentially bringing on board more talent to Huya's team to compete with Kuaishou, Douyin $ByteDance(FT0001)$ and $BILIBILI-W(09626.HK)$ .

Hopefully, the innovation and reinvention will come soon and the shareholders can be rewarded.

$TENCENT(00700.HK)$ $Tencent(TCEHY.US)$ $HUYA Inc(HUYA.US)$ $Live Streaming(BK2438.US)$ $China Concept Stocks(BK2517.US)$ $Hang Seng TECH Index(800700.HK)$

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Feirre

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