- Tencent Holdings Ltd (OTC:TCEHY) looks to shut down its game streaming service citing a shift in its business strategy, Bloomberg reports.
- The streaming platform, called Penguin Esports, will terminate all services on June 7 after having already suspended new user registrations and in-app purchases.
- Tencent looks to compensate users by giving away digital coupons in games like League of Legends, operated by Tencent-owned Riot Games Inc.
- Tencent made a move more than a year after Beijing blocked it from creating China’s equivalent of Amazon.com Inc’s (NASDAQ:AMZN) Twitch through a merger.
- In 2020, Tencent’s proposed combining investees HUYA Inc (NYSE:HUYA) and DouYu International Holdings Ltd (NASDAQ:DOYU) earned a veto from China’s antitrust watchdog.
- Tencent looked to fold Penguin Esports, valued at $6 billion, into the newly combined company.
- Beijing’s regulators had not approved a single gaming title by Tencent or any other game developer since July.
- Price Action: BILI shares traded lower by 1.57% at $29.55 in the premarket on the last check Thursday.
