Bilibili soars in recent valuations

Credit: Bilibili

This week, IFR (International Financing Review) reported that Chinese video platform Bilibili appointed four banks: Morgan Stanley, Goldman Sachs, JP Morgan Chase, and UBS to arrange its return to Hong Kong for a secondary listing and possibly seeking to raise $800 million to $1.5 billion.

The stock price of Bilibili rose 6.81%, and the latest market value reached 16.74 billion US dollars.

Bilibili’s early profit model relied heavily on games. When it tried to transform, it found that the advertising business had better liquidity, which led to the start of its acceleration of the layout of pan-entertainment.

With the acceleration of the commercialization of live broadcast, advertising, and e-commerce, the non-game revenue of Bilibili has exceeded its gaming revenue for the first time.

Judging from the financial data in the second quarter of 2020, the results are obvious: total revenue reached $382.9 million, with an increase of 70% over the same period in 2019, making a new revenue record high; also, the gross profit for this quarter was $88.3 million, achieving sustained growth for 5 consecutive years. Tencent spent $317.6 million on Bilibili to increase its holdings to 12%, while Alibaba held about 8% of the shares in Bilibili.

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