Bilibili CEO to take direct control of video gaming unit as streaming site seeks fresh growth drivers, people say

Chen Rui, CEO of Chinese video streaming website Bilibili, is set to take over direct management of the company’s video gaming unit, as the US and Hong Kong-listed company seeks new growth amid a faltering domestic economy.

Bilibili’s video gaming businesses, including its publishing division and three in-house game studios, will directly report to Chen, the 44-year-old chief executive of the Shanghai-based company, while Zhang Feng, senior vice-president and previously head of video gaming, will take on new responsibilities, according to an internal notice sent to staff last Friday, the contents of which were confirmed by people familiar with the matter.

The adjustment is aimed at further strengthening the company’s gaming business and implementing a strategy of focusing on “self-developed products and global distribution”, Bilibili’s human resources department wrote in the staff notice.

Bilibili did not immediately respond to a request for comment.

Chen’s move to take direct control of the gaming business signals it is reverting to one of its original revenue drivers for new growth amid economic headwinds and slowing revenue at home. The dual-listed company has emerged as a prime target for short-sellers in the US over the past few months, after advertising spend fell at the firm, deepening investor concerns about profitability. Bilibili has yet to make a profit since it was founded in 2009.

The company’s stock has tumbled 74 per cent since the beginning of 2022. However, its share price surged 9.3 per cent in Hong Kong on Monday after Chinese media reported the gaming reshuffle over the weekend.