By CUI Peng

The merger of leading game streaming platforms Huya and Douyu has been suspended, sources told Jiemian News. Tech giant Tencent owns about a third of each company, and has been driving the merger. The application was withdrawn before the results of an antitrust review were announced. 

A source at Tencent Interative Entertainment Group who asked not to be named told Jiemian News the company started working on a plan B as early as January, for it feared the authorities might call the merger off due to antitrust concerns. 

"We have planned an alternative to deal with the assets of Douyu and Huya," the source said but didn't reveal the specific plan. 

The two platforms started negotiation in 2019 and the merger was announced in October last year. 

A source close to the matter from Huya said at the time, Tencent expected the merger would be done within six months. Yet two months after the merger was announced, the market watchdog said an investigation had been launched to probe into the merger.

Rumors said that Tencent was told to give up some of its exclusive rights to the merged platform which would undermine its market dominance. The company appears to have failed to address the concerns.

The shares of both companies fell at opening on July 6.