Chinese video-sharing platform Bilibili (NASDAQ: BILI) has invested HKD 511.7 million (USD 66 million) into film studio Huanxi Media (HKSE: 1003) in exchange for a 9.9% stake as the studio beefs up offerings of new blockbuster films and hit dramas, Huanxi announced on August 31. According to the filing, Bilibili is subscribing to 347 million shares of Huanxi at RMB 1.48 (USD 0.22) per share.
Bilibili will also own the exclusive external broadcasting rights of Huanxi’s film and television productions. For further cooperation, Bilibili will have the priority when investing in projects led by Huanzi and the duo is likely to develop spinoff content or products centered around Huanxi’s intellectual property. Huanxi’s stock jumped 7.89% to HKD 1.64 while Bilibili rose 4.98% to USD 47.39.
Huanxi Media holds an optimistic attitude towards partnerships with online streaming platforms, causing discontent from some theater operators. In January, it signed a deal with ByteDance to bring its movie, Lost in Russian, straight to online, instead of opening in theaters, as the coronavirus pandemic forces theaters to close.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.