Chinese video platform Bilibili has completed its strategic investment in media company Huanxi Media, subscribing for 347 million additional common shares issued by Huanxi Media at a price of HK$1.48 per share with a transaction size of HK$513 million.
Bilibili holds approximately 9.9% of Huanxi Media’s equity as of now and the two parties have signed a five-year cooperation agreement to jointly develop film and TV dramas as well as television IP. Bilibili has also obtained the exclusive broadcasting right of Huanxi’s films and TV series.
In Huanxi’s announcement issued on Sept. 22, the company is picking up from the gloomy domestic movie market caused by the pandemic. It will launch a series of TV dramas and films including two airing during the upcoming National Day holiday, Leap, which is based on the China women’s national volleyball team’s stories, and My People, My Homeland, a five-story comedy directed by Zhang Yimo.
As one of the cooperation projects with Bilibili, web drama Run For Young will be released soon, which is invested by Huanxi Media, directed by Zhang Yibai and stars Peng Yuchang.
Bilibili’s rising profile in recent years has attracted investment from tech giants, including Sony’s $400 million stake in the company in April and Alibaba’s 9% stake purchase in Bilibili in 2019.
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Despite the rich and diverse original content brought by registered users and investment from big corporations, Bilibili is still looking for more competitiveness to rival ByteDance’s PUGC platform iXigua.
As the platform is primarily known for mainly animation, gaming and livesteaming videos, the collaboration with Huanxi Media, a film company regarded as the old HBO, adds a significant pillar to broaden its business.