Can anyone shed some light on this for me?
- YY created HUYA and IPO'd it in May at $16, retaining 44% of ordinary shares w/ Tencent investment
- HUYA's share price has nearly doubled to $30 (peaking at $46)
- YY's share price is flat since the IPO (~$100)
- HUYA's market cap now exceeds YY's while YY retains 44% ownership
- Discounting the HUYA stake leads to YY being valued on earnings at a ~5x forward multiple
- Meanwhile, YY's core business is seemingly healthy and growing
Is the market almost entirely ignoring the HUYA stake?
I'm tempted to long YY / short HUYA, or at least simply long YY.
Submitted June 28, 2018 at 10:38AM by talyen42 https://ift.tt/2KfwhDo
