The size of the investment appears to remain unclear at this stage.
Eighteen-month-old Douyu TV is partly notable for being backed by Sequoia Capital China, so it’s clearly not a company that is likely to vanish over night, and is likely gaining good traction in its home market.
There are now more than 446 million gamers in China, with game revenue expected to reach $22.2 billion this year, according to data from research firm Newzoo that was cited by WSJ. Other estimates I’ve come across in the past suggest that over half of these gamers watch live-streamed gaming content.
That’s a heck of a big opportunity.
In general, I’d say this is a very interesting space in China to keep an eye on in the near-term — and is certainly one that Western rivals like Twitch and YouTube ought to keep abreast of, as well.
Tencent did not reply to our request for comment at the time of publication.