Jul 10, 2019 (China Knowledge) - Douyu, an e-sports livestreaming platform, on Monday raised the target for its Nasdaq debut. The company is raising up to USD 629 mln at USD 11.50 to USD 14 per American depositary share.
The Wuhan-based startup Douyu was backed by Tencent Holdings, which owns 43.1% of the company. Douyu's increasing its IPO target comes as the company reported a USD 2.7 mln profit on revenue of USD 222 mln in the Q1 2019, which meant the company is moving into black for the first time. Last year, the company’s revenue totaled USD 544.5 mln, double that of 2017.
The Chinese gaming giant Tencent is hedging its bets in the country's fast-growing livestreaming industry, and it also owns about a third of another Chinese livestreaming startup, Huya.
The competition between Douyu and Huya is fierce as both claim iself the No. 1 game livestreaming platform in China. Douyu claimed more average monthly active users, while Huya has the upper hand in revenue, which reached USD 678.3 mln in 2018. However, Douyu's revenue growth caught up with Huya in the Q1 2019.
Douyu has contracts with many of China's top streamers exclusively, but Huya's users have a greater inclination to spend money on the platform. The two companies are also looking to expand in overseas markets.
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