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Huya Files Terms For U.S. IPO

May 02, 2018 10:01 PM ETHUYA Inc. (HUYA)4 Comments


  • Huya aims to raise $165 million in a U.S. IPO of its ADSs.
  • The firm is a spin-out of parent YY and provides live video streaming content to younger Chinese demographics.
  • Topline revenues are growing rapidly and efficiencies are improving, but the firm faces strong competition in a desirable market.

Quick Take

Huya (NYSE:HUYA) intends to raise $165 million in a U.S. IPO of ADSs representing underlying Class A shares.

The company is a large live game streaming service provider in China.

Huya is rapidly growing revenues, improving its cost and marketing efficiencies as it scales and is making good progress toward profitability, but faces significant competition.

Company & Technology

Guangzhou-based Huya was founded in 2014 to provide video game live streaming services as a business unit of its parent firm YY (YY).

Management is headed by CEO Rongjie Dong, who has been with the firm since 2016 and was previously EVP of parent firm YY.

The firm has a major live streaming and games partnership with Chinese Internet giant Tencent (OTCPK:TCEHY). Tencent also invested approximately $462 million in Huya’s Series B round in March 2018.

Major shareholders are parent company YY (55.5% voting power pre-IPO) and Tencent (39.8%).

Huya has created a web and mobile combination platform optimized for streaming live video and e-Sports content to young Chinese consumers.

e-Sports content is currently the most-watched aspect of the platform, with over 90 e-sports event organizers broadcasting more than 360 tournament matches or events. The site had more than 3.6 million streaming hours of other entertainment content in Q4 2017.

Customer Acquisition

Huya creates relationships with potential users/broadcasters primarily through word of mouth and through connections with major talent agencies in China. It claims to have ‘the largest talent agency network in China,’ according to a Frost & Sullivan report.

The site not only encourages viewers to interact with broadcasters but also with other viewers, creating what management views is a virtuous cycle of increased engagement between producers of content and viewers.

Notably, Huya intends to increase its focus on leveraging ‘AI technology and big data analytics to more identify high potential

This article was written by

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