What happened Shares of DouYu (NASDAQ: DOYU) popped Monday, trading 9.3% higher as of 1:10 p.m. EDT, while shares of Huya (NYSE: HUYA) had dropped by 12.5% after Huya announced it would acquire rival DouYu. Chinese tech giant Tencent (OTC: TCEHY), which owns stakes in both live-streaming companies, has been pushing for a combination. So what Huya is offering 0.73 American Depository Shares (ADS) for each DouYu ADS in an all-stock deal. Based on Friday's closing prices, the transaction values DouYu shares at approximately $18.83, or about a 35% premium to where it finished last week. The boards of both Huya and DouYu have approved the deal, but DouYu shareholders representing at least two-thirds of voting power will still need to approve the merger. DouYu co-CEOs Shaojie Chen and Wenming Zhang, who have 54.6% combined voting power, have committed to voting in favor of the deal. Image source: Getty Images. In a separate deal worth $500 million, Tencent has agreed to assign its interests in its Penguine e-sports live-streaming business to DouYu while deepening its ties with the company. Now what Huya and DouYu shareholders will each wind up with roughly 50% of the combined company, which will be led be Huya CEO Rongjie Dong and DouYu's Chen as co-CEOs. Tencent has entered into a separate agreement to buy DouYu shares from Chen -- the company expects to wield approximately 67.5% of the combined company's total voting power. The merger is expected to close in the first half of 2021. 10 stocks we like better than HUYA Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and HUYA Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Evan Niu, CFA owns shares of Tencent Holdings. The Motley Fool owns shares of and recommends Tencent Holdings. The Motley Fool recommends HUYA Inc. The Motley Fool has a disclosure policy.Source