BILIBILI IS IN TALKS WITH YOOZOO GAMES TO BUY 24% OF ITS STAKE

Highlights –

  • Bilibili is in talks with Yoozoo games to buy 24% of its stake.
  • Bilibili is backed by Chinese technology giants Tencent Holdings and Alibaba Group Holding.
  • The Chinese gaming industry reported a profit of $44 billion in 2020.
  • Bilibili invested $123 million for a 4.72% stake in online game developer X.D. Network.

According to sources, China’s online video site Bilibili is reportedly in talks with the country’s Yoozoo Games to buy a 24% stake and its headquarters building as part of a deal worth nearly 5 billion yuan ($765 million). The video making company seeks to expand in the world’s top gaming market.

According to reports, Bilibili is in talks on the deal with Xu Fenfen, chairwoman of Yoozoo, also known as Youzu Interactive. Recently, Bilibili and its founder Chen Rui had submitted to Xu a term sheet – a non-binding agreement describing the basic terms and conditions of an investment.

Based on the Shenzhen-listed company’s market capitalisation of $1.98 billion on Wednesday, a 24% stake in Yoozoo is worth about $475 million.

Reportedly, Bilibili and Chen are also looking to acquire Yoozoo’s headquarters building in Shanghai and take on debt of nearly 700 million yuan the company’s late founder Lin Qi left.

That will value the overall transaction at nearly $765 million.

Last week, Bilibili invested HK$960 million ($123 million) for a 4.72% stake in online game developer X.D. Network, and that it could team up with some Shanghai-based state investors to form a consortium for the deal.

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