Sogou gains on report that China likely to clear Tencent deal soon, may block DouYu’s sale to Huya

  • Sogou rose 0.7% on a report that Tencent’s planned $3.5B acquisition could be cleared as soon as next week in China.
  • China’s antitrust regulator is near approving the deal, traders said, citing a report that is circulating.
  • Recall in early April Reuters reported that China’s antitrust authority, the State Administration for Market Regulation or SAMR, was close to approving Tencent’s acquisition.

  • Separately, DouYu, which is being acquired by Huya, fell 1.3% on the same report saying that China is expected to make public a decision to block that deal.
  • In late April, a report circulated that China antitrust regulators may block the DouYu deal. In May, Dealreporter said the Chinese antitrust regulator hadn’t indicated its intention to block the Huya deal.
  • In May, DouYu CEO Shaojie Chen said on the company’s conference call that the deal with HUYA was on track.

Author: Josh Fineman, Seeking Alpha