Internet group Tencent has provided $630m of funding for China-based game-focused livestreaming platform Douyu, Sina Technology reported today, citing comments by Douyu CEO Chen Shaojie.
Originally known as AcFun, Douyu operates an online livestreaming platform that broadcasts gaming and eSports content. It had 30 million daily active users as of late 2017, when it claimed it had also reached profitability.
Tencent has been an investor in Douyu since the company’s $100m series B round in early 2016, and the companies formed a strategic partnership later the same year.
The corporate is one of the largest game publishers worldwide and, through various subsidiaries, owns titles such as Gears of War, CrossFire, League of Legends and Clash of Clans
Chen said: “I thank the shareholders for their support and thank my team for their effort and struggle even more. In its new journey, Douyu will help Tencent dig deep into the game streaming field and complete the strategic collaboration between gaming and livestreaming.”
Douyu is reportedly considering an initial public offering this year that would raise between $300m and $400m, though it has not revealed any details considering its IPO plans.
Tencent supplied $61.5m for the series B round, which included game developer Zeus Interactive as well as Sequoia Capital China and Nanshan Capital. The latter two took part as existing backers, though no details have been released regarding their earlier investment.
Douyu raised $227m in a series C round co-led by Tencent and Phoenix Capital with participation from Shenzhen Capital Group and the state-backed National SME Development Fund later the same year.
Financial services group CMB International subsequently led a round sized at about $150m for the company in the first half of 2017, Sohu has reported. CMB, which acquired a 5.2% stake through the transaction, was joined in the round by Nanshan Capital.
News of Tencent’s investment came two days after video-focused social media company YY announced plans to spin off its own live game streaming platform, Huya, through an IPO in the US. It has already filed for the offering confidentially and is reportedly seeking more than $200m.