Huya recently traded at $24.39, down 8.9%. The shares have fallen 9% over the past six months.
Chinese regulators are looking over Huya's proposed acquisition of rival DouYu International (DOYU) - Get Report for $6 billion Tencent TCEHY owns shares in both and would have a 68% stake in the combined company.
In December, Chinese regulators said they would scrutinize the deal to see whether it violates China’s monopoly laws, since the combined company would control 80% of the videogame-streaming market. China’s regulators are investigating Alibaba (BABA) - Get Report for monopolistic practices.
Meanwhile, on Monday Huya also said in a Securities and Exchange Commission filing that Fil Ltd./Bermuda sold $26.3 million of Huya shares in the fourth quarter. That’s 1.08 million shares, or 1.3% of Huya’s shares outstanding.
After the sale, Fil owns 4.33 million, or 5.2%, of the shares outstanding with a market value of $105.5 million, Bloomberg reports.
China’s Tencent is the world's biggest videogame company. In November, after Tencent’s third-quarter-earnings report, Morningstar analyst Dan Baker raised his fair value for the stock to $84.40 from $77.
“We lifted our revenue estimate for the gaming businesses, increased the market valuation of investments and adjusted the Chinese yuan-Hong Kong dollar exchange rate,” he wrote in a commentary.
“We think Tencent has put more of the focus on cloud and advertising businesses following its reorganization. … Tencent is transforming from consumer internet to industrial internet.”
Tencent recently traded at $95.15, down 0.3%.