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Tencent will purchase more than 25M shares in Bilibili for a total investment of $317.6M

The Chinese tech giant will own roughly 12.3% of Bilibili’s total issued shares.

Bilibili owns both a professional League of Legends team and one of the new Overwatch League expansion teams.

Chinese tech giant Tencent Holdings has entered into a share purchase agreement with video sharing platform Bilibili. The agreement will see Tencent purchase 25,063,451 Class Z ordinary shares at a purchase price of $12.67 per share, bringing the total investment to roughly $317.6M.

With this transaction, Tencent will own approximately 12.3% of Bilibili’s total issued shares. At time of writing, the pre-market value of Bilibili shares has risen 13.15% to $15.06.

Related Article: Tencent Restructures Amidst Falling Share Prices

[perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]The deal expands Tencent’s esports influence in China.[/perfectpullquote]

Not only does the deal add another digital service to Tencent’s portfolio, but it expands the company’s esports influence in China. Bilibili owns Bilibili Gaming, a professional League of Legends team competing in China’s professional league, and recently acquired the Hangzhou expansion spot in the Overwatch League . Tencent is also an investor in livestreaming platform Huya , which acquired the Chengdu Overwatch League franchise. It also owns a 5% stake in Activision Blizzard as well.