Redian新闻
>
Chinese Police Arrest Douyu CEO on Gambling Charges

Chinese Police Arrest Douyu CEO on Gambling Charges

社会

While police stated that Chen Shaojie, CEO of Douyu, was arrested on charges of opening a casino, the US-listed company warned investors of the potential fallout.
Weeks after reports surfaced of his “disappearance,” Douyu, China’s top video game livestreaming platform, has confirmed that CEO Chen Shaojie has been arrested on charges of gambling, an activity prohibited in the mainland.

A day after the company’s announcement, the Dujiangyan Public Security Bureau in the southwestern Sichuan province stated Wednesday they had arrested a 39-year-old man surnamed Chen on charges of operating a casino on Nov. 16. Officials said investigations were ongoing. 

The Wuhan-based Douyu, which is backed by Chinese tech giant Tencent and listed on the Nasdaq, is the country’s top game livestreaming platform and also hosts other streaming content related to entertainment, sports, and variety shows. It was founded in 2014 and spun off from AcFun, a video platform similar to Bilibili, in 2010. 

While Douyu stated that the company is maintaining normal business operations while ensuring it complies with regulatory requirements, it also warned investors that Chen’s arrest and subsequent legal proceedings might impact its “reputation, business, and operation results.” On Thursday, Douyu did not respond to Sixth Tone’s request for further comment.

As of Wednesday, the US-listed company’s stock price dropped by 5.93% and closed at $0.91, less than one-tenth of its initial public offering of nearly $11 in 2019. As of March 31, 2022, Tencent owned 37.7% of Douyu’s stake, while Chen had 17%. 

According to the Shanghai-based news outlet The Paper, speculation surrounding Chen’s disappearance began in October when several sources confirmed that his last public appearance was during a conference call after Douyu’s second-quarter financial report on Aug. 14.

In that meeting, Chen stated that he would continue to build a healthy and sustainable gaming community ecosystem for Douyu, while implementing a “game-centered diversified content ecosystem.” 

In recent years, Douyu has faced increasing challenges as other short video platforms like Douyin, the Chinese version of TikTok, and Kuaishou have expanded. According to Douyu’s annual financial reports between 2020 and 2022, the company’s revenue declined, dropping from 9.6 billion yuan to 7.1 billion yuan ($1.3 billion to $996 million).

In October, the company stated that the closing bid price of its American Depositary Shares had remained below the minimum bid price of $1 for the preceding 30 consecutive trading days. If the stock price does not recover to above $1 by April 2024, the company may face the possibility of delisting.

This year, China has undertaken a series of initiatives aimed at tightening regulations on online content. Douyu has emerged as a prominent target of these efforts. 

In two separate regulatory actions focused on curbing illegal and pornographic content online, Douyu stands out as the sole company specifically named on two occasions for disseminating pornography and vulgar material and facilitating gambling activities.

In May, the Cyberspace Administration of China issued an order mandating a one-month period of concentrated rectification and supervision for the platform.

You Yunting, a senior partner at Shanghai DeBund Law Offices, told domestic media Yicai that Chen’s arrest indicates that the platform not only failed to comply with its supervision responsibilities, but also engaged in illegal activities. “This may be related to intense external competition, the slowdown or even negative growth of the industry, and the pressure of internal performance evaluations,” he said. 

Editor: Apurva. 

(Header image: Chen Shaojie, CEO of Douyu, China’s top video game livestreaming platform. IC)


Download the new Sixth Tone app at the App Store or Google Play
APK file for Android:
https://image4.sixthtone.com/pkg/sixthtone.apk
(Copy URL and open in browser)

微信扫码关注该文公众号作者

戳这里提交新闻线索和高质量文章给我们。
相关阅读
【齐风猎作品】电影啊,电影!Fuchsia Dunlop on the Past, Present, and Future of Chinese FoodDoltgreSQL发布,基于Git的PostgreSQLYoung Chinese Turn to Taobao for Psychological SupportHas the ‘Double Eleven’ Shopping Festival Lost its Luster?Google CEO at APEC:中国将成为AI(人工智能)领域的领头羊How Guangdong Pioneered Chinese Photography京东零售 CEO 批头部主播高佣金:现在是一万个工厂养一个主播Not《幻象》but 《偶像》=Eidolons [華特·惠特曼]Chinese Reality Show Explores ‘Strong Woman, Weak Man’ Marriages长篇小说连载《此世,此生》第五十五章二我读书了The Chinese Burger Startups Vying to Take a Bite Out of KFC哇!大消息!OpenAI刚刚开除了自己的 CEO Sam Altman,且公告及其具有羞辱性,大家品品孩子想做sports gambling, 怎么劝退?头像|𝐒𝐡𝐚𝐫𝐞·招桃花头像Golden Week: Chinese Tourists Flock to Destinations Near and FarIn China, Young Fans Are Swapping Merch For Self-Made ‘Freebies’Xiaomi CEO Makes Largest Ever Donation to Wuhan UniversityChatbots, Self-Care, Alter Egos: What Young Chinese Want in 2024China's Top Court Spotlights Domestic Violence Children大瓜。Open AI CEO 性侵妹妹nǚ hóng?nǚ gōngOld Markets, New Appeal: Young Chinese Rediscover Wet MarketsLet Sleeping Kids Lie, Hangzhou School District AnnouncesYoung Chinese Street Vendors Toil for Friendship, FreedomProviding Long-Term Care for Shanghai’s Most Vulnerable Resident280刀JBL Pulse 5 Portable Bluetooth Speaker (Black)“公”和“私”是“自”衣裳,不自由 ,毋宁死”的正读,当为“私秘处都护不住,换了这underwear 。要不然呢?”TUM、LMU食堂纷纷罢工!泼天的富贵这次轮到Döner店了?Olympic Stage Set, Young Chinese Dance to the Breaking Beat部分旧版Chase Freedom用户被强制“暖心升级”成Chase Freedom UnlimitedAlert: Maintain vigilence with regards to your surroundingsChina’s Gen Z is Buying Gold to Grow Wealth — One Bean at a TimeThe Cross-Dressing Star Sending Up China’s Office CultureSpace Race: Why Young Chinese Are Cutting Ties with RelativesSurge in Chinese Students Using AI for Academic Edge: New SurveyAs Golden Week Starts, Chinese Turn Homes into Tourist Stays面试技巧|如何回答Where do you see yourself in 5 years?Young Chinese Embrace Budget-Friendly Elderly Universities
logo
联系我们隐私协议©2024 redian.news
Redian新闻
Redian.news刊载任何文章,不代表同意其说法或描述,仅为提供更多信息,也不构成任何建议。文章信息的合法性及真实性由其作者负责,与Redian.news及其运营公司无关。欢迎投稿,如发现稿件侵权,或作者不愿在本网发表文章,请版权拥有者通知本网处理。