We believe DOYU has been involved with illegal online gambling on their platform. Our research indicates that not only is DOYU hosting these illegal activities, but they are actively encouraging their users to gamble on their platform to boost revenue
Recent policy announcements indicate a more stringent regulatory environment that is cracking down on online gambling, order brushing and faking operat-ing numbers. We believe the full scale of the policy reform will be massive
MOMO, another online streaming platform based in China, recently presented terrible financial performance in light of “structural reform”. We believe this is an indicator of what is to come to DOYU
DOYU opted to not give revenues guidance for Q4 for the first time since it went public, likely due to the dim quarter following the crackdown of many DOYU streamers due to illegal online gambling. We modeled out Q4 guidance based on streamer performance data and project a decrease on both a YoY and QoQ basis. We believe further deterioration is soon to follow, and the impact will be long lasting
We identified additional evidence of order brushing and suspected pornography on DOYU, both of which are subject to more stringent regulatory control in China
Recently HUYA and DOYU announced their business combination. However, we believe HUYA is not without problems either. Our research indicates that HUYA might also host illegal online gambling. Regard-less of whether the deal goes through or not, we believe both companies would be trading at much lower valuations
Just today Chinese media reported that DOYU’s second most prominent streamer has been arrested by the police due to suspected online gambling. The problems seem to be massive on DOYU’s platform
THIS REPORT AND ALL STATEMENTS CONTAINED HEREIN ARE THE OPINIONS OF GRIZZLY RESEARCH LLC AND ARE NOT STATEMENTS OF FACT.
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By downloading and opening this report you knowingly and independently agree: (i) that any dispute arising from your use of this report or viewing the material herein shall be governed by the laws of the State of [New York], without regard to any conflict of law provisions; (ii) to submit to the personal and exclusive jurisdiction of the superior courts located within the State of [New York] and waive your right to any other jurisdiction or applicable law, given that Grizzly Research LLC is a Delaware limited liability company; and (iii) that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to use of this website or the material herein must be filed within one (1) year after such claim or cause of action arose or be forever barred. The failure of Grizzly Research LLC to exercise or enforce any right or provision of this disclaimer shall not constitute a waiver of this right or provision. If any provision of this disclaimer is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as rejected in the provision and rule that the other provisions of this disclaimer remain in full force and effect, in particular as to this governing law and jurisdiction provision. You agree that the information on this website is copyrighted, and you therefore agree not to distribute this information (whether the downloaded _le, copies / images / reproductions, or the link to these _les) in any manner other than by providing the following link: http://GRIZZLYREPORTS.COM . If you have obtained research published by Grizzly Research LLC in any manner other than by download from that link, you may not read such research without going to that link and agreeing to the Terms of Use on the Grizzly Research LLC designated website.
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