The deal between Internet giant Tencent Holdings Ltd. and Chinese game video streaming platform Douyu TV, which aims to intensify the former's online games business, is currently underway, people familiar with the matter revealed.
The partnership, which is now nearing completion, is Tencent's way to add new marketing channels.
Douyu TV is an online platform for live videos of people who are playing games, company insiders said. The firm is akin to Twitch, a game video portal acquired by Amazon.com Inc. in 2014 for around $1 billion.
Douyu is operated by the startup backed by Sequoia Capital China, Guangzhou Douyu Internet Technology.
However, financial details regarding the deal are not yet disclosed.
The Tencent-Douyu deal is part of the former's plan to maintain its status as the country's leader in online games. China is currently the world's largest market in terms of numbers of gamers.
According to market-research company Newzoo, China has around 446.3 million gamers. Game revenue is expected to reach $22.2 billion this 2015.
Last month, Tencent's financial statements showed that the firm has garnered a slower growth rate, from the first quarter's 28 percent to 17 percent in the second.
Portals such as Twitch and Douyu, where netizens can watch and comment on other people who are playing games, are popular among global gamers. These services have helped build loyalty among fans.
These firms also serve as online portals for gaming tournaments among the international community.
Douyu TV was first established in 2013. Its management team is located in the central Chinese city of Wuhan.