HUYA bought APKPURE from Tencent for $81 million

January 6, 2024 (2 months ago)

2024 is approaching in a blink of an eye, and some companies have begun to plan for next year.

According to a report by Beijing Business Daily on December 25, HUYA disclosed in a document submitted to the U.S. Securities and Exchange Commission (SEC) that it reached a final agreement with a wholly-owned subsidiary of Tencent Holdings through its wholly-owned subsidiary to Total cash consideration of US$81 million to acquire 100% equity interest in a global mobile application service provider from Tencent, subject to customary adjustments to the acquisition price. Although Tencent and Huya did not disclose the specific target. However, reports quoted multiple sources as saying that the target of Huya’s recently disclosed acquisition was apkpure, an overseas app store owned by Tencent.

According to public information, apkpure is an overseas application store owned by Tencent. In its early years, it was a product of a domestic Internet company. It mainly engaged in overseas application store business and was acquired by Tencent in 2021. According to Huya’s plan, the mobile application service provider’s financial results will be merged with Huya. The acquisition of a mobile application service provider is expected to enhance Huya’s ability to promote and distribute game applications internationally, while creating synergies with the company’s overseas game live broadcast platform Nimo TV. The deal is also in line with Huya’s strategy, which emphasizes business transformation of game-related services and related commercialization.

As game live broadcasts gradually decline, Huya’s operations are also in decline. Since the fourth quarter of 2021, Huya has experienced year-on-year revenue declines for eight consecutive quarters, with its quarterly paying users falling from 5.6 million to 4.2 million in the third quarter of 2023. In the third quarter of 2023, Huya’s revenue was 1.65 billion yuan, a year-on-year decrease of 40%, and its non-GAAP net profit was 103 million yuan, basically the same as the same period last year. At the business level, Huya’s live broadcast revenue was 1.532 billion yuan, down 24.1% from 2.017 billion yuan in the same period last year, and advertising and other revenue was 116 million yuan, down 67.9% from 361 million yuan in the same period last year.

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