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Douyu, China’s Twitch backed by Tencent, files for a $500M U.S. IPO – TechCrunch

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Douyu, a Chinese live streaming service focused on video games, has filed with the U.S. Securities and Exchange Commission as it prepares to raise up to $500 million on the NYSE less than a year after its archrival floated on the same stock market.

Wuhan-based Douyu, whose name translates as “fighting fish”, is the second Twitch -like service backed by Tencent to go public in the United States. Its direct competitor Huya, who has a similarly fierce name “tiger’s teeth” and also counts Tencent as a major investor, raised $180 million from its NYSE listing last May.

It’s not surprising for Tencent to hedge its bets in esports streaming, given the giant relies heavily on video games to make money. For example, Tencent can use some of its portfolio companies’ ad slots to get the word out about its new releases. Indeed, Douyu’s filing shows it received a hefty 27.48 million yuan ($4.09 million) in advertising fees from Tencent last year.

As Douyu warns in its prospectus, its alliance with Tencent can be tenuous.

“Tencent may devote resources or attention to the other companies it has an interest in, including our direct or indirect competitors. As a result, we may not fully realize the benefits we expect from the strategic cooperation with Tencent. Failure to realize the intended benefits from the strategic cooperation with Tencent, or potential restrictions on our collaboration with other parties, could materially and adversely affect our business and results of operations.”

But there are nuances in the giant’s ties to China’s top two live streaming services that could mean more affinity between Tencent and Douyu. The social media and gaming behemoth is currently Douyu’s largest shareholder with a 40.1 percent stake owned through its wholly-owned subsidiary Nectarine. Over at Huya, Tencent is the second-largest stakeholder behind YY, the pioneer in China’s live streaming sector that had spun off Huya.

When it comes to the financial terms, the rivaling pair is in a head-on race. In 2018, Douyu doubled its net revenues to $531.5 million. Huya held an edge as it earned $678.3 million in the same period, also doubling the amount from a year ago.

Huya may have learned a few things about monetizing live streaming from 14-year-old YY as it managed to pull in more revenues despite owning a smaller user base. While Douyu claimed 153.5 million monthly active users in the fourth quarter, Huya had 116.6 million.

How the two make money also diverge slightly. In the fourth quarter, 86 percent of Douyu’s revenues originated from virtual items that users tipped to their favorite streaming hosts, with the remaining earnings derived from advertising and more. By contrast, Huya relied almost exclusively on live streaming gifts, which made up 95.3 percent of total revenues.

Screenshot of a Douyu live streaming session 

As Douyu grows its coffers to spend on content as well as technologies following the impending IPO, competition in China’s live streaming landscape is set to heat up. Just earlier this month, Huya raised $327 million in a secondary offering to invest in content and R&D. Like many other businesses anchored in content, Huya and Douyu depend tremendously on quality creators to keep users loyal. Both have offered sizable checks to live streaming hosts, promising to grow the internet celebrities into bigger stars.

And they’ve extended the battlefield outside China as emerging media forms, most exemplified by short video services Douyin (TikTok’s China version) and Kuaishou, threaten to steal people’s eyeball time away. Both bite-size video apps now enjoy a much bigger user base than their live streaming counterparts.

“We intend to further explore overseas markets to expand our user base through both organic expansion and selective investments,” noted Douyu in its IPO filing.

In a similar move, Huya’s overseas expansion is also well underway. “In addition to our vigorous domestic growth, we have successfully leveraged our unique business model to enter new overseas markets. We believe we are delivering long-term value through strategic investments in overseas markets in 2019 and beyond,” said Huya chief executive Rongjie Dong in the company’s Q4 earnings report.

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Today’s Wordle Answer #594 – February 3, 2023 Solution And Hints

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If the answer is still a mystery, the word is “tasty.” Apart from describing food as having agreeable flavor, you could say something or someone is tasty if they’re elegant or tasteful. The word is a diminutive of the root noun “taste,” which is from Old French “tast,” which is the term for the sense of touch (now Modern French tât).

In the original context of its usage around the 1400s, “taste” meant a share or a small portion; or the sense by which the flavor of a thing is discerned; and savor or flavor. But by the late 1600s, it had also taken on the sense of “aesthetic judgment,” or “the ability to recognize and appreciate excellence” (via Etymonline). There are more variations of its usage, however, especially in idioms. For example, if you have a taste for something, it means you have a strong preference or desire for it, and if something’s so bad you can taste it, it means that thing is extremely unpleasant (via The Free Dictionary).

This is all based on the fact that the sense of taste is quite adept at perception and discrimination of refinement or finesse. This is the sense on which phrases like “have a good eye/nose” are also based. On average, the human tongue has 2,000–8,000 taste buds, with hundreds of thousands of receptor cells. To keep the sense of taste as keen as possible, each taste bud gets replaced about every two weeks (via Britannica).

We hope you finish your puzzle before you run out of guesses, and if you have a taste for puzzles, here are more like Wordle to keep you busy.

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A New Cybertruck Spotting Just Revealed Two Big Design Changes

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The first clear change to the Cybertruck has to do with the rearview mirrors. As Electrek correctly notes, the Cybertruck was originally meant to lack side mirrors, favoring the more futuristic solution of body-mounted cameras. Assuming the particular prototype that was spotted on the road in Palo Alto represents recent changes, that’s at least one concession to reality from the aggressively conceptual Tesla truck.

The second, arguably more significant change is to the truck bed. Prior to this sighting, the Cybertruck had yet to be shown with a working, retractable tonneau cover. User Flavio Tronz on Instagram seems to have caught the Cybertruck with the cover half-retracted, suggesting that particular challenge has also been conquered.

In short, the Cybertruck seems to be getting the tweaks and flourishes to be expected for a car that is expected to enter full-scale production soon. The implementation of simple, proven solutions, like side mirrors, suggests that Tesla is getting real about putting their vision of the future on actual roads.

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Is It Safe To Charge Your iPhone With Macbook Charger?

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According to Apple, if you own a Mac laptop or an iPad and have immediate access to the USB power adapter that came with it, you can certainly use it to charge your iPhone without the worry of potentially damaging your mobile device’s battery. It can also be used to charge other Apple products like a pair of AirPods or the Apple Watch. The following Apple USB power adapters are some of the options that can be used to charge your iPhone, provided that you have a USB-to-lightning cable:

  • 5W USB power adapter that came with iPhones that preceded the iPhone 11
  • 10W US power adapter that was included with every iPad Air and iPad Air 2, iPad 2, and iPad mini 2,3, and 4
  • 12W USB power adapter that was packaged with several versions of the iPad Pro

If you have a Mac USB-C power adapter or other third-party adapters that fulfill Apple’s safety standards, they can be used to charge your iPhone as well. Certain USB-C power adapters, when used in tandem with Apple’s USB-to-lightning cable, have the ability to fast-charge an iPhone 8 and later iterations up to 50% battery in about half an hour (via Apple). This includes the 29W USB-C power adapter that accompanied older MacBook models that were released in 2015 onwards as well as the 30W, 35W, 61W, 67W, 87W, 96W, and 140W USB-C power adapters that came with certain versions of the MacBook Air and MacBook Pro. If you own a MacBook laptop and have its Apple-brand power adapter, you should be able to see its wattage printed right on the device itself and determine if it can be used to charge your iPhone.

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