Stock Alert: DouYu Jumps 15% On Merger Deal

(RTTNews) - Shares of DouYu International Holdings Limited (DOYU) are currently gaining over 15% on Monday morning after the Chinese live-game streaming company agreed to merger with competitor Huya Inc. (HUYA) through a stock-for-stock deal.

DOYU is currently trading at $16.04, up $2.04 or 14.57%, on the Nasdaq.

Huya and DouYu agreed to merge with Tiger Company Ltd., a newly formed company with limited liability incorporated under the laws of the cayman Islands. Pursuant to the Merger Agreement, Huya will acquire all the outstanding shares of DouYu.

Tencent, which owns significant stake in both Huya and DouYu, had been pushing for the deal for months.