Bilibili (BILI) Stock: Gaining On Tencent Partnership

Bilibili Inc - ADR BILI Stock NewsBilibili Inc – ADR (NASDAQ: BILI) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a partnership that will not only strengthen its offering, but will drive a large investment into the company. Today, we’ll talk about:

  • The news;
  • what we’re seeing from BILI as a result; and
  • what we’ll be watching for with regard to the stock ahead.

BILI Announces Partnership News

As mentioned above, Bilibili is having an incredibly strong start to the trading session this morning after announcing partnership news. In a press release issued early this morning, the company said that it has entered into a strategic collaboration agreement with Tencent. The partnership specifically surrounds the sharing and operating of existing and additional anime games.

Under the terms of the agreement, BILI will work with Tencent in the exchange and purchase of existing anime copyrights. The companies will also jointly procure, produce and invest in anime projects, as well as seek investment opportunities in the animation and comic industry. Also, Bilibili will expand its cooperation with Tencent by jointly operating more Tencent games on its platform.

The agreement also follows a massive $317.6 million investment in cash that Tencent is making in BILI. As a result of the investment, Tencent owns approximately 12% of the company.

In a statement, Mr. Rui Chen, Chairman of the Board and CEO at BILI, had the following to offer:

The strategic cooperation with Tencent further aligns us with China’s leading internet company, and supports our strategy to bring high quality content and services to our growing community… We can now leverage Tencent’s innovative research and development capabilities and premium content, particularly in licensing, co-producing and investment in anime, as well as game publishing. We look forward to working together to continue to raise the bar for content and accessibility for our growing Bilibili community. Together, with Tencent’s deep resources and Bilibili’s best-in-class platform, we can continue to bring rich content to China’s ever growing number of online enthusiasts, while increasing the value we bring to all of our stakeholders.

What We’re Seeing From The Stock 

As investors, one of the first lessons that we learn is that the news moves the market. In the case of Bilibili, the news proved to be overwhelmingly positive. After all, not only did the company recently receive a large investment, it has further support as it works to bring more anime games on its platform and continues to move further into the anime and comic sector. So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:25), BILI is trading at $12.60 per share after a gain of $0.61 per share or 5.09% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on BILI. In particular, we’re interested in following the story surrounding the company’s continued relationship with Tencent and the strength that this relationship provides. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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