Digital content publisher Chinese All Digital Publishing Group plans to pay RMB250m ($36m) for a 13.5% stake in China-based online video streaming platform AcFun, China Money Network reported on Tuesday, citing a regulatory filing.
The shares will be purchased from existing AcFun investors SB China Capital SoftBank China Venture Capital (SBCVC), a venture capital subsidiary of Japan-headquartered telecom and internet group SoftBank, and online video platform Youku Tudou.
Founded in 2007, AcFun operates an online video streaming service aimed at millennial viewers that allows them to send text-based messages while watching clips.
SBCVC led AcFun’s $60m series B round in January this year, five months after Youku Tudou invested $50m in the company at a reported $200m valuation. The company, now valued at $269m, lost a total of almost RMB260m across 2014 and 2015.
Chinese All Digital also intends to invest $36m in China-based game distributor MorningTec in return for a 20% share of the company, according to a separate filing.
MorningTec raised RMB50m in a series A round led by Haitong Leading Capital Management, a subsidiary of securities firm Haitong Securities, in early 2014.