Exhibit 99.2
Bilibili Announces Equity Investment in Huanxi Media
SHANGHAI, August 31, 2020 — Bilibili Inc. (“Bilibili” or the “Company”) (Nasdaq: BILI), a leading online entertainment platform for young generations in China, today announced that it has entered into a definitive subscription agreement (the “Subscription Agreement”) with Huanxi Media Group Limited (“Huanxi Media”) (HKEX: 1003), a company principally engaged in media- and entertainment-related businesses, including development of and investment in films and TV drama series, as well as operation of a streaming platform.
Pursuant to the Subscription Agreement, Bilibili will subscribe for 346,626,954 newly issued ordinary shares of Huanxi Media (the “Subscription Shares”) at the subscription price of HK$1.48 (equivalent to approximately US$0.191 (the “Subscription Price”) per Subscription Shares for an aggregate consideration of approximately HK$513,007,892 (equivalent to approximately US$66,192,859). The Subscription Price was arrived at after arm’s length negotiations between the Company and Huanxi Media with reference to the recent trading price and trading volume of the shares of Huanxi Media traded on the Main Board of the Stock Exchange of Hong Kong (the “Hong Kong Stock Exchange”). The closing of this transaction is conditional upon the following conditions being fulfilled: (a) the Listing Committee of the Hong Kong Stock Exchange granting listing of, and permission to deal in, the Subscription Shares; and (b) the Business Cooperation Agreement (as defined below) coming into effect. Upon completion of this transaction, the Company will beneficially own approximately 9.90% of the total enlarged share capital of Huanxi Media.
Simultaneous with the execution of the Subscription Agreement, two wholly-owned subsidiaries of the Company also entered into a five-year business cooperation agreement with a wholly-owned operating subsidiary of Huanxi Media (the “Business Cooperation Agreement”), which will become effective prior to the completion of the subscription of the Subscription Shares. The Company and Huanxi Media will pursue collaboration opportunities in online entertainment for the Chinese market, including films and TV drama series, and developing derivative intellectual property rights of the films and other TV programs owned by Huanxi Media.
Pursuant to the Business Cooperation Agreement, Bilibili will gain exclusive online broadcasting rights other than Huanxi’s own online platform to existing and upcoming releases of Haunxi Media-owned films and TV drama series, including the highly anticipated releases of LEAP (Duo Guan) and Run for Young (Feng Quan Shao Nian De Tian Kong). Bilibili will also be granted first right of refusal to any new films and TV drama series developed under Huanxi Media’s expansive portfolio of broadcasting contracts with a number of China’s leading directors.
Ms. Carly Lee, Vice Chairwoman of the Board and Chief Operation Officer of Bilibili, said, “We are actively broadening and diversifying our content to appeal to a wider audience. The key investments we are making now support our future growth, and build on the early momentum we achieved in the first half of the year. We believe Huanxi’s library of high-quality content, as well as their relationships with China’s top directors, align with our strategy to continuously bring in rich new content, and open new opportunities to drive more and diverse demographics to our industry-leading entertainment platform.”
Mr. Steven Xiang, CEO of Huanxi Media, said, “This strategic partnership will bring significant benefits to both companies. We will integrate our resources to provide our audiences with an increasing number of high-quality content.”
