Tencent-Backed Video Game Streaming Platform Douyu Files for IPO
According to a report published Monday by Bloomberg, which cites the IPO filing, Douyu International Holdings plans to list its American depositary shares on the NYSE under the ticker DOYU. The company plans to raise $600 to $700 million with Morgan Stanley, J.P. Morgan and BofA Merrill Lynch are acting as underwriters in the public offering.
Douyu, which previously reached unicorn status by raising more than $1 billion in private equity funding, functions similar to Twitch, where gamers can live-stream their play while providing commentary and fans can subscribe to their favorite content. Interestingly, Tencent also backs Douyu’s main game streaming rival in China, Huya (HUYA), which IPO’d on the NYSE last year.
According to the filing, Douyu plans to leverage the funds raised to invest in esports content, R&D and marketing. The platform reported 2018 net revenue of $531.5 million, with a net loss $127.4 million.
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