As 2024 quickly approaches, many companies are already laying the groundwork for next year’s strategic moves.
According to a report by Beijing Business Daily on December 25, Huya has revealed in a filing submitted to the U.S. Securities and Exchange Commission (SEC) that it has reached a final agreement to acquire a global mobile application service provider from Tencent Holdings. Under the deal, Huya’s wholly-owned subsidiary will pay a total cash consideration of USD $81 million, subject to customary adjustments, to purchase 100% equity interest in the target company. Although neither Tencent nor Huya officially disclosed the identity of the acquired company, multiple sources cited in the report suggest that the target is APKPure , an overseas app store owned by Tencent.
Public records indicate that APKPure was originally developed by a Chinese internet company and focused on overseas app store operations before being acquired by Tencent in 2021. According to Huya’s plans, the financial results of this mobile application service provider will be consolidated into Huya’s accounts following the acquisition.
Huya believes the acquisition will significantly enhance its global capabilities in promoting and distributing game applications. It also aims to create synergies with Nimo TV, Huya’s overseas game live streaming platform. This strategic move aligns with Huya’s broader direction toward transforming its business model, focusing increasingly on game-related services and related monetization opportunities.
However, Huya has faced significant challenges in recent years as the game live streaming market has gradually cooled down. Since the fourth quarter of 2021, the company has reported year-over-year revenue declines for eight consecutive quarters. In the third quarter of 2023, Huya’s paying user base dropped from 5.6 million to 4.2 million. Financially, the company recorded revenue of RMB 1.65 billion in Q3 2023—a 40% decrease compared to the same period last year—while non-GAAP net profit stood at RMB 103 million, roughly flat year-over-year.
Breaking down the revenue streams, Huya’s live broadcast income fell to RMB 1.532 billion, down 24.1% from RMB 2.017 billion in the same period last year. Meanwhile, advertising and other revenues declined sharply by 67.9%, dropping to RMB 116 million from RMB 361 million during the same time frame.
This acquisition signals Huya’s effort to diversify beyond its traditional live streaming business and strengthen its foothold in the international gaming ecosystem.
