Tencent to shut down Penguin Esports
Twitch-like streaming platform dropped as online giant cites "changes to its business development strategy"
Tencent is shutting down its game streaming platform Penguin Esports, according to a Reuters report.
The closure will happen by June 7, and was blamed on "changes to [Tencent's] business development strategy."
Last year, Tencent planned to fold Penguin into a single company with Huya and DouYu, two other game streaming firms in which it held at least one-third ownership.
However, those plans were scuttled when the Chinese government blocked the merger of Huya and DouYu on antitrust concerns. The combined entity would have held an estimated 80% share of the game streaming market in China.
The Chinese government has been tightening restrictions on video games and the tech industry in general in recent years. Last November it temporarily blocked Tencent specifically from updating its mobile apps or launching new ones.
Reuters reported last month that Tencent and fellow Chinese tech giant Alibaba were preparing to layoff tens of thousands of employees to cope with the impact of the country's regulatory moves.