According to Reuters, Chinese social media firm JOYY calls Muddy Waters’ report erroneous.
(Reuters) – Chinese social networking platform JOYY Inc said Thursday that a report by short-seller Muddy Waters contained numerous errors and that it was open to cash verification by competent outside advisers.
JOYY also said it will continue its $ 300 million share buyback program to show confidence in its long-term outlook.
Muddy Waters called JOYY a “billion dollar fraud” on Wednesday and decided to bet against its shares just days after Chinese search engine giant Baidu Inc struck a deal to buy JOYY’s domestic streaming platform.
“We conclude that the components of YY are a fraction of the size it reports, and that the company’s reported user statistics, revenues and cash balances are predominantly fraudulent,” Muddy Waters said in a report on its website. [bit.ly/3lErXvU bit.ly/3lErXvU]]
JOYY’s US-listed shares were up 14.4% to $ 84.24 during early trading Thursday.
Reporting by Eva Mathews in Bengaluru; Adaptation by Shinjini Ganguli
© Thomson Reuters