Chinese video streamer Bilibili, dual listed in New York and Hong Kong, has made an equity investment in Shanghai-based mobile game developer XD Inc., as it aims to build a content library that can cater to the various tastes of animation fans, moviegoers, gamers as well as merchants.
Bilibili, which just made its secondary listing in Hong Kong last month, has acquired a 4.72% stake in XD for HK$960 million ($124 million), according to a stock filing on Thursday.
Some industry analysts said that the share purchase could give Bilibili greater access to XD’s own games and its online game sharing community TapTap, which had 24.8 million monthly average users in the first half of 2020, representing a year-on-year increase of 51.9%.
Bilibili counts its gaming business as one of its major revenue sources. According to its latest earnings report, the company’s revenue derived from mobile games rose 30% year-on-year to $173.1 million in the fourth quarter of last year, accounting for nearly a third of its total revenue.
In December 2019, Shanghai-based Bilibili won a bid to become the sole broadcaster in China of the popular online multiplayer game League of Legends’ annual World Championship between 2020 and 2022.
Bilibili’s investment came just days after ByteDance’s gaming subsidiary Nuverse announced an agreement to acquire Shanghai-based mobile game developer Moonton in a challenge against Tencent and NetEase in the country’s gaming sector.
Contact reporter Ding Yi (email@example.com)