Chinese video site Bilibili will receive $400 million (roughly Rs. 3,000 crores) equity investment from Sony Corp America, Bilibili said Thursday, as the two companies seek to further collaborate in entertainment to attract China’s Gen Z.

SCA, wholly-owned subsidiary of Sony, will subscribe for 17,310,696 newly issued Class Z ordinary shares of Bilibili at $23.1071 per share, Bilibili said.

Upon closing, SCA will beneficially own approximately 4.98 percent of Bilibili’s total issued shares, with a lock-up period of six months, it added.

Bilibili and Sony will further collaborate in the entertainment business in China, including in anime and video games, Bilibili said.

“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.

Starting out as an animation site popular among teenagers, Bilibili is expanding into other areas such as documentary, e-sports, and music videos, attracting more than 130 million monthly active users.

Backed by tech giants Tencent, and Alibaba, it signed a three-year contract worth CNY 800 million ($113 million) to broadcast League of Legends domestically as e-sports rapidly gain traction with the affluent younger generation.

© Thomson Reuters 2020

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