This article only represents the author's own views.
Its name means “fighting fish,” but these days DouYu International Holdings Ltd. (DOYU.US) seems more like a fish without a head that’s simply fighting to keep swimming in a Chinese gaming market teeming with competition and regulatory risk. Those challenges were front and center in the company’s first-quarter results released on Wednesday, led by plunges of 20% or more in nearly all of its major metrics.
The company was already swimming in choppy waters after its planned merger with chief rival Huya (HUYA.US) was vetoed by China’s market regulator in 2021. That deal was engineered by Tencent, which is a major backer of both companies. As the smaller of the pair, DouYu appeared to face the bigger challenge to survive.