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China’s two leading esports competitors, DouYu and Huya, could merge into one entity in the near future. DouYu International Holdings Limited, is a game-centric live streaming platform that has pioneered eSports value chain in China. The company revealed that it had received a preliminary non-binding proposal letter from Tencent Holdings Limited, the holding company of Huya Inc. As per the letter dated August 10, 2020, Tencent proposes for merger of DouYu and Huya.

The letter offers details about a possible stock-for-stock merger, by which Huya or its subsidiary would acquire each outstanding ordinary share of DouYu.

DouYu’s press release confirmed that its board of directors is reviewing and evaluating the proposal. The board also issued a caution that no decision has been taken on the matter and any decision would be taken only after careful review and evaluation.