Tencent's Penguin Esports Streaming Service Shut Down After China Blocked Merger

Penguin Esports has halted all new registrations, and will shut down services on June 7.

By Agence France-Presse | Updated: 8 April 2022 14:43 IST

Tencent's Penguin Esports Streaming Service Shut Down After China Blocked Merger

Tencent said its move was "due to changes in business development strategy"

Highlights

Penguin Esports has halted new in-app purchases
The decision comes after China's financial regulator blocked a merger
The tie-up would also have granted Tencent majority control

Chinese tech giant Tencent will close its game streaming platform, less than a year after authorities blocked a merger that would have powered its drive to take on Amazon's Twitch.

Beijing has stepped up scrutiny over big tech, launching a major crackdown on some of the biggest names in the sector, while the gaming market has also taken a hit owing to tighter controls on play time for minors.

Tencent's service, Penguin Esports, has halted new user registrations and in-app purchases, and will shut down all services on June 7, the firm said in a statement Thursday.

Tencent Games Reinstated After Getting Removed From Huawei’s App Store

The decision comes after China's financial regulator blocked a merger of the nation's two largest video game live-streaming sites over antitrust concerns in July.

The planned merger of live streaming services Huya and Douyu could have brought the combined platforms' domestic market share to as much as 90 percent - and Penguin Esports was to be moved under the combined entity.

The tie-up would also have granted Tencent majority control over the combined entity, with the transaction valued at about $6 billion (roughly Rs. 45,535 crore).

Tencent Holdings Profit Surges 89 Percent After Honour of Kings Launch

Tencent said its move was "due to changes in business development strategy", adding that it would compensate users with coupons in other games.

In the fourth quarter of 2021, Tencent's domestic gaming revenues rose one percent.

The total time spent by minors on games also dropped 88 percent on-year, the company said.

Why are they still making more Harry Potter? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.