MUMBAI: Sony Corp America (SCA) will pay Chinese online entertainment platform Bilibili $400 million in an all-cash transaction. On completion of the deal, the two companies will work together to tap the Chinese market, especially in sectors such as mobile games and anime.

Once the deal is closed, SCA will own around 4.98 per cent of Bilibili's total issued shares.

Bilibili, which started as an animation website targeted at and popular among younger audiences, now seeks to diversify into other areas like music videos, documentaries, and e-sports, attracting more than 130 million users per month. Its offerings include videos, live broadcasting and mobile games. Bilibili has primarily been known for its user-generated, short-form content. Of late, it has ventured into professional content-making, extending its bouquet of offerings to documentaries and long-form films. Its recent partnership includes the one with Discovery and China Intercontinental Communication Center to make “COVID-19: Battling the Devil,” about China’s battle against the virus.

“The strategic investment and business cooperation (by Sony) further align our goals to bring best-in-class content offerings and services to our users, as we increase our (Chinese) domestic stronghold in animation and mobile games,” said Bilibili CEO and chairman Rui Chen.