Tencent (ticker: 700. H.K) Holdings announced its decision to shut down its videogame streaming app, Penguin Esports, by early summertime. In a statement it released, the Chinese tech giant claimed that the decision was prompted by “the change of business development strategy” but refrained from adding any more details.
On its part, Penguin Esports has since stopped taking on any new users or live-streaming hosts and has even gone ahead to block existing users from topping their accounts. The app will be removed from all app stores and will stop operating by June 7, said the company.
The move seems highly suspicious as it comes at a time when Chinese authorities have increased their scrutiny of the country’s biggest technology companies.
Last year, China’s market regulator blocked the merger between game streaming platforms Douyu (ticker: DOYU) and Huya (ticker: HUYA), citing antitrust grounds. Tencent is currently among the largest investor in both companies, which provide video game live-streaming services similar to Twitch in the U.S. Huya has previously planned to merge with Penguin Esports to form a new combined group.