On September 7, 2026, Tencent announced that it would use the $700 million convertible bonds it held to issue by Bilibili as the core of the transaction. Tencent shifted from its original role as a core shareholder to that of a major creditor. This move aimed to help Tencent maintain its connection with its Bilibili business while enhancing capital flexibility to support the development of artificial intelligence projects and rebalancing the risk profile of its investment portfolio.
Tencent, through the $700 million convertible bonds it plans to issue with Bilibili, has shifted from a core shareholder to a major creditor. The transaction was announced on Friday, aiming to enable Tencent to maintain its connection with this largest online video platform in China while gaining capital flexibility to support expensive AI projects and rebalance portfolio risks.