Penguin Esports, Tencent’s game streaming platform, is closing on June 7 due to a “shift in business strategy,” reported Bloomberg.
This comes a year after Chinese authorities stopped the tech giant’s merger plan involving streaming firms Huya and DouYu due to anti-competitive concerns. Both players had a combined market share of 70% when the merger was blocked.
Tencent initially diverted its focus to its own streaming app following the regulatory verdict.
Following the shutdown, Penguin Esports users will get in-game digital coupons for titles under Riot Games, added Bloomberg. The platform has already stopped accepting new users and processing in-app transactions.
See also: Tencent’s financial health in 5 charts
The platform’s demise is the latest casualty of the Chinese government’s crackdown on big tech. With corruption accusations among the many issues thrown at them, tech giants have also started their own investigations. Earlier this year, Tencent fired around 70 employees after an internal probe showed cases of bribery and embezzlement.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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