China video giant Joyy dives after Muddy Waters calls it a fraud
The short-seller said Joyy's livestreaming service YY created bots, fake transactions and fake users days after Baidu agreed to buy it for $3.6bn
19 November 2020 - 16:48
Hong Kong/Beijing/New York — Joyy’s shares tumbled the most ever after short-seller Muddy Waters Research called it a “fraud tech company”, casting doubt over a pioneer of Chinese livestreaming that’s selling its local video business to Baidu.
Muddy Waters founder Carson Block said Joyy’s livestreaming service YY is “guilty of bot forming, creating fake transactions and having fake users”. The report, published on Wednesday, came days after Baidu agreed to buy YY for $3.6bn. Baidu representatives had no immediate comment while Joyy spokespeople didn’t respond to requests for comment...
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