Huya's History
Source: nAnalyze
Huya (NYSE:HUYA) is a Chinese gaming/lifestyle live streaming platform that launched in November 2014 with an incredibly active video game streaming community. They have partnered with various eSports event organizers, game developers, and game publishers to host the live broadcasts for eSports competitions that reach an audience of millions. A former subsidiary of YY (YY), a Chinese video streaming company, Huya received $426MM from Chinese tech giant Tencent (OTCPK:TCEHY), who took control of 32% of Huya with an option to purchase up to 50.1% of Huya's outstanding shares at any time between the second and third anniversaries of the funding round that closed in early March 2018. The Tencent investment placed Huya's value at $1.33BB.
Huya took the investment from Tencent and immediately began working towards an American IPO. The company raised $180MM and began trading on the NYSE on May 11, 2018, at a price of $12 per share. In their first fiscal quarter trading on an American exchange and reporting in GAAP (Generally Accepted Accounting Principles), Huya's share price reached a high of $50.82 and currently sits 187% above its price at IPO ($34.49 at closing July 27, 2018). Huya's explosive first month of trading and the subsequent pullback has left many investors wondering if the company was overhyped, or is working on making a move back to its ATHs (All Time High).
By all accounts, Huya had an eventful first quarter trading on American exchanges, and now that we have their first GAAP quarterly report, we can start making some judgments about them. Before diving into Huya's financial statements, it is important to have an understanding of the market they are targeting.
A Little Background On Game Streaming
The streaming sector covers a wide variety of aspects of entertainment, but for the purposes of
