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Sunday, 11/22/2020 13:30 PM (GMT + 7)
A report by the anti-shorting investigative agency Muddy Waters Research accused YY Live of massive fraud.
Earlier this week, Chinese search engine giant Baidu announced that it had acquired a live streaming service called YY Live from Guangzhou-based social media company Joyy in a deal. entirely in cash, worth $ 3.6 billion.
The acquisition will give Baidu the opportunity to expand into live streaming, an extremely popular retail and social media channel in China. But less than two days later, a report by the anti-short selling investigative agency Muddy Waters Research accused YY Live of massive fraud.
In a report published on November 19, Muddy Waters said that the YY Live figures were “almost completely false.” Muddy Waters said that he had been investigating YY Live for a year and had no information regarding “Baidu’s announcement of its intention to purchase YY Live from Joyy” when it was preparing to publish the findings of “its disclosure information.” YY Live about 90% is a scam. “
The American company claims that Joyy has defrauded 90% of YY Live’s revenue. Consequently, the “users” who send virtual gifts are mainly bots (programs that run automated tasks) from YY or hired from outside. This information could cause many Joyy investors to suffer heavy losses when shares plunged and Joyy fluctuated widely.
Muddy Waters also accused YY’s online dating unit Bigo Live of falsely claiming 80% of earnings. “We conclude that the actual size of YY’s company is only a fraction of what the company reports. Most of the data, such as YY’s user, revenue and cash balance metrics, is a false statement,” he emphasized. the company.
After the report was released on November 18, Joyy’s shares, which were traded on the Nasdaq (US), plunged 26% to close at $ 73.7.
Earlier this year, Muddy Waters Research also predicted that the Luckin Coffee chain’s stock price is sure to plummet. The firm described Luckin’s business model as “fraud and ruin,” a “billion-dollar stunt” in the market at the time.
Joyy, launched on Nasdaq in 2012, is a leading brand in the live streaming market, with a market capitalization of $ 8 billion. When announcing its third-quarter financial results, Joyy reported that revenue was up 36% year-on-year, 390 million average global monthly active users (MAU) across all platforms, and MAU 92 million on average across other affiliate streaming services.
“The Baidu acquisition will be a test. Is it that only a few Chinese companies have problems, or that fraud, defamation, and disregard for American law has been rampant, even with China’s largest public companies? “.
Source: http: //danviet.vn/them-mot-cong-ty-bi-to-cao-la-cu-lua-ty-do-nhieu-nguoi-khoc-rong-5020202211133 …
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