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Chinese social media firm JOYY calls Muddy Waters' report erroneous

(Reuters) - Chinese social networking platform JOYY Inc said on Thursday that a report by short seller Muddy Waters contained numerous errors and that it was open to cash verification conducted by competent third-party advisers.

JOYY also said it will continue with its $300 million share repurchase program to demonstrate confidence in its long-term prospects.

Muddy Waters on Wednesday called JOYY a “multibillion-dollar fraud” and decided to bet against its stock, just days after Chinese search engine giant Baidu Inc struck a deal to buy JOYY’s domestic streaming platform.

"We conclude that YY's component businesses are a fraction of the size it reports, and that the company's reported user metrics, revenues, and cash balances are predominantly fraudulent," Muddy Waters had said in a report on its website. [bit.ly/3lErXvU bit.ly/3lErXvU]]

U.S listed shares of JOYY were up 14.4% at $84.24 in early trading on Thursday.

Reporting by Eva Mathews in Bengaluru; Editing by Shinjini Ganguli

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