Sony Corp. America will invest USD 400 Million in an equity investment in Bilibili. Sony intends to collaborate with the Chinese video site to attract China’s Gen Z. Subsidiary of Sony Corp., SCA will subscribe a total of 17,310,696 new Class Z ordinary shares of Bilibili at USD 23.1071 per share. At the close of the deal, SCA will own a total of 4.98% of Bilibili’s total amount of issued shares that will entail a minimum holding period of six months.
The two companies will collaborate further in the entertainment business within China that includes animations and gaming. “Sony’s investment further aligns us with the world’s leader in entertainment and technology, which will enhance our capability to bring high-quality content and services to our growing community,” the company said.
Initially, Bilibili opened as an animation site that had the eyes of teenagers, the company has expanded into other areas of entertainment such as documentaries, music videos and esports with over 130 million monthly active users.
Bilibili has contracts with Alibaba and Tencent, which signed a three year contract worth over USD 113 Million to broadcast its esports game League of Legends domestically to appease its teenage user base.