Sony Paying $400M For Stake in Chinese Bilibili

Sony is to pay US$400 million for a minority stake in Chinese online entertainment platform Bilibili. The deal values Bilibili at US$8 billion.

The all cash transaction is to be conducted through Sony Corporation of America and sees SCA buy 17.3 million Bilibili shares, or just under 5% of Bilibili’s capital. Bilibili stock is traded in ADR form in the U.S. on the NASDAQ exchange, at US$23.1 per share. Prior to the announcement Bilibili ADR shares, finished trading on Wednesday at US$26.20 apiece.

The two companies states that, on completion, they will sign a business agreement to pursue entertainment collaboration opportunities in the Chinese market, in sectors including anime and mobile games.

Popular with Generation Z audiences and new generation creators, Bilibili positions itself as “a full-spectrum online entertainment world.” Its operations stretch from videos and live broadcasting to mobile games.

“The strategic investment and business cooperation (by Sony) further align our goals to bring best-in-class content offerings and services to our users, as we increase our (Chinese) domestic stronghold in animation and mobile games,” said Rui Chen, chairman and CEO of Bilibili in a prepared statement.

Full Content: Reuters

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