Video streaming platform Bilibili (NASDAQ: BILI; HKEX: 9626) has acquired a 4.4% stake in game developer XD Network (HKEX: 2400) for HKD 960 million (USD 124 million), according to a filing posted on Thursday.
XD’s Hong Kong-listed shares surged 21% on Thursday afternoon. Founded in 2002, the firm has 35 online and 11 premium games in its portfolio. It also runs the community and review site TapTap, which has become a popular game distribution channel in recent years as it takes no revenue cut from publishers.
As China’s game companies are restricted from accessing Google Play due to US sanctions, they depend on local Android stores controlled by Huawei, Xiaomi, and Oppo. But the phone makers are insisting on a 50-50 revenue-sharing model, much to the dismay of publishers. Last year, the global sensation Genshin Impact was released on TapTap domestically.
In the first half of 2020, the TapTap mobile app counted 24.8 million monthly average users, a 51.9% year-on-year growth. In all, 219.9 million games were downloaded, up 26.4%, said the company’s earnings report.
Best known for its anime, comic, and gaming video community, Bilibili has moved deeper into the sector in the last several years by adding livestreaming, e-sports, and mobile games. In Q4 2020, gaming revenue accounted for 30% of its total income.
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.