Bilibili stock got a boost today on news of an investment from Tencent (OTCMKTS:TCEHY).
Bilibili (NASDAQ:BILI) notes that its deal with Tencent will have the company making a major investment into it. This includes the company selling a total of 25,063,451 newly issued Class Z ordinary shares to TCEHY.
Tencent will be purchasing these shares for a total of $12.67 per share. This will have it spending a total of $317.6 million to acquire the new shares of Bilibili stock. The Class Z ordinary share are equivalent to BILI’s American Depositary Shares.
Once the deal is complete, Tencent will have a large stake in Bilibili. The company’s stake will come to 12.3% of all Bilibili stock. Bilibili and Tencent don’t give an exact date of when the deal will close, but they expect it to be in the near future. Bilibili is still currently going through its IPO. The extra money from that and this deal will likely help it as it plans to further grow its business in the country.
Bilibili is a Chinese entertainment company with a focus on providing content for the younger generation. The company distributes its content online in the country. The investment from Tencent makes sense as it is a provider of internet services in China.
BILI stock was up 8% and TCEHY stock was down slightly as of Wednesday afternoon. BILI stock is up 15% since the start of its IPO and TCEHY stock is down 10% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
