Sony said on Thursday that it is investing $400 million to secure a 4.98% stake in Chinese entertainment giant Bilibili.
10-year old Bilibili features animation, comics, games and offers users the ability to stream their videos. The service, which has amassed over 115 million users, has attracted several big investors over the years, including Chinese giant Alibaba.
The announcement pushed Bilibili’s share up by 7.6% in the pre-market trading. Sony has made the investment through its wholly-owned subsidiary Sony Corporation of America.
In a statement, Sony said the company believes China is a key strategic region in the entertainment business. BiliBili says it targets China’s Gen-Z. The vast majority of its users — about 80% — were born between 1990 and 2009.
The two companies have also agreed to pursue collaboration opportunities in the entertainment field in China, including animation and mobile game apps, they said.
You can read more about Bilibili’s business and dominance in China in my colleague Rita Liao’s piece.