Tencent to shut down video game streaming platform after antitrust crackdown

Asian Tech Press (Apr. 8) -- Tencent (0700.HK) on Thursday announced the shutdown of its video game streaming platform Penguin Esports, following an antitrust crackdown.

Penguin Esports stated that due to a change in business strategy, its relevant products will cease operations at 11:59 pm BST on June 7, 2022.

The shutdown follows that China's State Administration for Market Regulation (SAMR) imposed an antitrust crackdown in July 2021, halting Tencent-backed merger of Huya and Douyu, China's top two video live-streaming platforms.

The merger have valued the new combined company at around $6 billion at the time and Tencent planned to move its Penguin Esports brand under the combined entity.

The Chinese market regulator said Tencent may implement a two-way blockade to the upstream and downstream after the merger of the two platforms.

Earlier, there were news from the industry that Penguin Esports would end its operations in June at the latest, and then the platform replied, "Normal operations are underway and everything is subject to official notice."

In early March, a number of Penguin Esports streamers posted on social media platforms announcing their departure from the video game streaming platform.

Founded in July 2016, Penguin Esports was launched by QQ.com in cooperation with QQ Games and Tencent Interactive Entertainment, and is a platform under Tencent that focuses on connecting the e-sports ecology.

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