As a result, shares of douyu and Huya also fell slightly, with douyu down 4.77% to $13.57 and Huya down 4.77% to $13.57.
Interface news reporters to YY and its acquisition party Baidu to verify, both did not respond to the matter.
Muddy water said in the report that after a years investigation, it was found that nearly 90% of yylives live broadcasting income was fake, and YYs high-income anchor only accounted for a small part of the total report. YY controls most of the live rooms to carry out continuous false transactions. In YYs live broadcast, a large number of fans are robots. They contribute more than 50% of the live broadcast awards, and the anchor also circulates to reward himself.
Baidu may find the problem in subsequent investigations, the agency said.
It concluded that 84 per cent of YYs consolidated income was false, constituting billions of dollars in fraud. Based on more conservative assumptions, YY has about 73% false income.
In the era of gathering trade unions for financial reporting in the past five years, they have not questioned the income of the trade unions in the past five years.
The report also cited several examples of head anchors, such as the anchor modern brothers.. Muddy water said a YY channel manager revealed that YY paid viewers to watch a free street show by modern brothers. In addition, the agency found that YY created robots in 58 countries and regions to reward modern brothers, almost all of which came from fake users.
Earlier, huanju times just released its third quarter financial report this week, and disclosed that Baidu had signed a final binding agreement with it to acquire YY live broadcasting service of huanju group for us $3.6 billion. The two sides will complete the delivery in the first half of 2021. According to the agreement, Baidus acquisition includes but is not limited to YY mobile applications YY.com Website, yypc client, etc.