Sony has invested $400 million in Chinese video-sharing site Bilibili.
The transaction, which was all-cash, will be done through Sony Corporation of America. SCA bought 17.3 million shares, which is equal to just under 5% of Bilibili’s capital.
Bilibili’s stock currently trades in the US for $23.1 a share, but before the announcement, it finished trading Wednesday at $26.20. It’s up 7% in early trading Thursday.
At the closing, Bilibili and Sony will also enter into a business deal to pursue collaborations anime, and mobile games, and other areas of the entertainment industry in the Chinese market.
“We are excited to partner with Sony, the world’s leader in entertainment and technology. 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. We look forward to joining efforts on a broader scale to fulfill the tremendous and growing entertainment needs in China,” said Rui Chen, CEO and chairman of Bilibili.
Bilibili is popular site among the young people of China, specializing in video sharing, live broadcasting and mobile gaming.
Sony Corporation of America, a subsidiary of Sony Corporation, is a creative entertainment company specializing electronics. Businesses that fall under it include Sony Electronics USA, Sony Pictures Entertainment, Sony Interactive Entertainment, Sony Music Entertainment, and Sony/ATV Music Publishing.