Sony invests US$400 million in Chinese streaming video platform Bilibili
- The cash investment will give the Japanese conglomerate’s US subsidiary a 4.98 per cent stake in Bilibili
- Bilibili is the biggest video-comics-and-gaming entertainment platform for China’s Generation Z consumer market
Japanese conglomerate Sony Corp is investing US$400 million in cash for a minority stake in online entertainment platform Bilibili, accelerating the Shanghai-based company’s expansion in the world’s second largest economy.
Subsidiary Sony Corporation of America (SCA) agreed to subscribe to 17.3 million newly issued Class Z ordinary shares of Bilibili, which said on Thursday that the two companies will also enter into a business collaboration pact.
The transaction, which values Bilibili at US$8 billion, will give SCA a 4.98 stake in the Chinese streaming video services provider. The deal is expected to close on April 10.
“The strategic investment and business cooperation further align our goals to bring best-in-class content offerings and services to our users, as we increase our domestic stronghold in animation and mobile games,” said Chen Rui, the chairman and chief executive of Bilibili, in a statement on Thursday. “We look forward to joining efforts on a broader scale to fulfil the tremendous and growing entertainment needs in China.”
The two companies will pursue collaboration opportunities within China’s entertainment industry, including anime and mobile games.
The new funding will enable Bilibili to sharpen its focus on growth areas and develop into a major industry contender behind Chinese streaming video giants iQiyi, Youku and Tencent Video – backed, respectively, by internet titans Baidu, Alibaba Group Holding and Tencent Holdings. Alibaba is the parent company of the South China Morning Post.