①Bilibili announced plans to issue convertible preferred bonds with a total principal of $700 million, maturing in 2031. Tencent subscribed for $200 million through its subsidiary. ②Just after achieving annual profitability, Bilibili made AI a core investment focus. In the AI sector, funds will be used to enhance AI capabilities in content understanding, recommendation, and creation, deepen user engagement, and improve productivity and efficiency using AI.
Bilibili plans to issue convertible preferred bonds with a total principal of $700 million, due in 2031. Tencent will subscribe for $200 million of these bonds through its subsidiary. According to the announcement, Bilibili intends to use the proceeds to hedge repurchase funds, synchronize Tencent’s repurchase activities, support AI-driven business growth, and cover general corporate expenses. In terms of AI, the funds will be used to enhance AI capabilities in content understanding, recommendation, and creation, deepen user engagement, and improve productivity and efficiency through AI. This financing comes at a time when Bilibili first achieved annual profitability; its CFO previously announced an increase of $1 billion in annual AI-related expenditures. The transaction consists of three steps: issuing bonds, secondary placement of Class Z common shares, and share repurchase. Tencent plays multiple roles in this transaction, including as a subscriber, seller, and repurchaser. The final completion of the transaction depends on market conditions and shareholder approval.