Tencent Closes Game Streaming Site After Beijing Blocks Merger

(Bloomberg) — Tencent Holdings Ltd. will shut down its game streaming service more than a year after Beijing blocked its effort to create China’s equivalent of Amazon.com Inc.’s Twitch through a merger, the company said.

The streaming platform, Penguin Esports, will terminate all services June 7 after having already suspended new user registrations and in-app purchases, Tencent said Thursday in a statement. The company cited a shift in business strategy and said it will compensate users by giving away digital coupons in games like League of Legends, which is operated by Tencent-owned Riot Games Inc.