SONY ACQUIRES MINORITY STAKE AT CHINESE DIGITAL PLATFORM BILIBILI

Sony has been arranged to pay $400 million for a minority stake in the Chinese online entertainment platform, Bilibili. The deal values Bilibili at $8 billion. The transaction will be made in cash through Sony Corporation of America and sees SCA buy 17.3 million Bilibili shares, just under 5% of Bilibili’s capital. Bilibili stock is traded in ADR form in the U.S. on the NASDAQ exchange, at $23.1 per share. Before Bilibili announced ADR shares, it finished trading on Wednesday at $26.20 a piece.

Bilibili was enduring losses in 2019, but its revenues grew by 74% to $288 million. At the end of 2019, it claimed 130 million monthly average users and 37.9 million daily average users. It accumulates loyal, paying subscribers by teasing basic users to take a 100-question entrance exam about anime games and comics content. Those who complete the test within two hours are promoted to the status of official members. As a result, it claimed 68 million official members, up 50% from a year earlier, in the fourth quarter of 2019. Upon completion of the transaction, the companies will sign a business agreement in hopes of pursuing entertainment collaboration opportunities in the Chinese market, in sectors such as anime and 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.

Bilibili refers to itself as “a full-spectrum online entertainment world.” It operates videos, live broadcasting, and more. The streaming platform is best known for user-generated short-form content, but has recently increased its volume of professionally generated content and stretched into longer format films and documentaries. It recently partnered with Discovery and China Intercontinental Communication Center to produce and release “COVID-19: Battling the Devil,” a show about China’s fight against the coronavirus. The program was streamed on Bilibili and will be broadcasted by Discovery Channel through territories in Asia, North America, Europe, and Africa.