DouYu International Holdings (NASDAQ:DOYU) Stock Takes a Hit: A Good Buy Opportunity Now?
DouYu International Holdings Limited (NASDAQ:DOYU) dropped 9% after the company announced that the Chinese State Administration for Market Regulation (SAMR) had prohibited its proposed merger with Huya Inc. after an antitrust review. The eSports value chain pioneer and game-centric streaming platform will abide and respect the SAMR decision.
The company has indicated that it will comply with regulatory requirements and carry its business as per the applicable regulations and laws.
Following the decision, Huya and it’s subsidiary Tiger Como any Limited, Tencent holdings Limited’s subsidiary Nectarine Investment Limited and DouYu have terminated the agreement to merge dated October 12, 2020. The move to terminate the agreement comes as regulators increase scrutiny in technology companies for anti-monopoly violations. In addition, at the beginning of the week, SAMR also fined several tech companies, including Alibaba and Tencent-owned companies, for failure to disclose Acquisition and merger transactions for approval. So, in the coming months, DOYU is a stock to watch.
Market Reaction:
On Monday, DOYU stock went down 8.81% at $4.97 with more than 14.50 million shares, compared to its average volume of 3.50 million shares. The stock had moved within a range of $ 4.9300 – 5.4900 after opening the trade at $5.45. Over the past 52-week, the stock has been trading within a range of $4.9300 – 20.5400.
