Streaming: The "Chinese Twitch" DouYu Goes to Assault Wall Street

10

DouYu goes on the Wall Street assault. China's "live streaming" platform for video game games, supported by its second largest shareholder, Internet giant Tencent, aims to raise $ 944 million during its Nasdaq IPO.

This amount is almost
twice as high

    than the one mentioned by the group in April. At the time, DouYu planned to realize its IPO during the month of May. But this operation was delayed due to trade tensions between the United States and China, says a source quoted by
Bloomberg agency

   . Finally, the nugget of tech will take its first steps on the stock market on July 17.

Streaming leader in China

DouYu could beat the record of
"Chinese Starbucks" Luckin Coffee

   which, during its IPO in May, lifted
$ 561 million

   . The palm for a Chinese firm in the United States is still owned by Alibaba. In 2014, the e-commerce giant had
raised nearly 22 billion

   .

Founded in 2013 by Zhang Wenming, DouYu is one of the world's leading streaming video games companies. In the first quarter of 2019, the company claimed some 159.2 million active users, a growth of 25.7% year-on-year. His arrival on the markets should enable him to continue his technological development and to keep the high dredge to Huya, the other Chinese specialist in the sector, who made his first steps on Wall Street in 2018.

Prestigious investors

Streaming video games are very popular in China, especially among young people. This did not escape the investors. Since its inception, DouYu has raised more than $ 1 billion from Alibaba, Baidu and Tencent. The latter owns 40.1% of DouYu but has also invested in Huya.

Last year, DouYu recorded a net loss of $ 127.4 million. Its sales jumped 94% to 531.5 million. But the nugget of streaming is on the path of profitability. In the first quarter of 2019, it posted a profit of $ 2.7 million. What reassure markets.

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