Tencent is shutting down its video game streaming platform just months after Beijing blocked a massive merger that would have turned the Chinese internet giant into a significant player in the industry.
Tencent has announced that the service Penguin Esports will be discontinued as of June 7, citing a change in business strategy.
Tencent’s Penguin Esports, like Amazon’s Twitch, broadcasts professional gaming tournaments and other video game-related material live. Tencent is one of the world’s top online gaming companies, and it’s making a big push into professional gaming, often known as e-sports, in the hopes of generating additional revenue.
Tencent’s goals have been harmed by the latest move, which comes months after Chinese regulators blocked a significant merger that would have made Tencent one of the world’s largest game streaming companies.
Tencent suggested combining Huya and DouYu, two live game streaming startups in which it held significant investments, in 2020. Tencent planned to bring its Penguin Esports brand under the combined organisation, valuing the new company at about $6 billion at the time.
However, Chinese regulators halted the purchase last year due to antitrust concerns.
Tencent has announced that new user registration on Penguin Esports would be disabled as of Thursday. The app will be deleted from app stores on June 7th, and its servers will shut down.
Tencent continues to invest in sectors such as e-sports, but Chinese officials have tightened gaming laws to protect young users from addiction, including limiting the amount of time children under the age of 18 can play online and blocking approvals of new titles.
Tencent, which had its weakest quarterly revenue increase on record in the fourth quarter of last year, is feeling the pinch.
(Adapted from TodayNewsNetwork.com)