American subsidiary of Sony Corp (TYO: 6758), Sony Corp America is set to pump in investment worth $400 million in Chinese video sharing website Bilibili (NASDAQ: BILI).
The two parties made the announced during a joint press statement further adding the partnership is targeting the millennials and generation alpha as its customers.
Bilibili is commonly referred to as ‘B site’ has its headquarters located in Shanghai and the common items shared on the websites include: animations, comedy and simple games.
Bilibili said Sony Corp America is set to subscribe to a total of 17,310,696 of its newly issued class z ordinary shares. Sony will be purchasing the shares at $23.1071 per share.
After the deal has been finalized, Sony Corp America will own approximately 4.98% of Bilibili’s total issued shares, this ownership will be attached to a six months lock up period.
Thereafter, the two parties will work together in the Chinese entertainment industry including producing animated movies and developing games.
“Sony’s investment further aligns us with the world’s leader in entertainment and technology, which will enhance our capability to bring high-quality content and services to our growing community,” said Bilibili.
After it was launched, Bilibili has been widely engaging in producing animations mostly for teenage viewers. However, the company is now diverging into other areas including music, sports and entertainment.