Chinese social media firm JOYY calls Muddy Waters’ report erroneous

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. []]

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

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