Bilibili prices $700M convertible with Tencent anchoring the deal
What's the deal? Bilibili has priced $700 million in zero-coupon convertible senior notes, alongside an equity and buyback package, with Tencent as lead investor. The Shanghai-based video platform announced the deal on September 4, 2026.
The structure: The notes mature on September 15, 2031 and carry no interest. Investors can convert them into Bilibili's Class Z ordinary shares at a price yet to be set.
Tencent's role: The gaming and social giant is taking a $200 million slice of the notes through a subsidiary — nearly 30% of the issuance — anchoring the deal. It is simultaneously selling roughly $400 million of Bilibili's Class Z shares, shifting from pure equity to a hybrid position.
Where the money goes: Bilibili has earmarked proceeds for share repurchases, AI initiatives, and general corporate purposes. Buybacks total up to $300 million, split between about $200 million from Tencent and roughly $100 million in delta-related repurchases.
The company said its AI spending will target recommendation algorithms and content creation, drawing on its large library of user-generated video.
Why now? Bilibili has a track record of using convertibles to fund operations, including a $690 million offering in May 2025 that also paired equity with buybacks. Zero-coupon notes keep cash off the balance sheet, with dilution only if the stock climbs enough to trigger conversion.
What could go wrong? The conversion price was unset at announcement — a higher price shields shareholders from dilution but makes the notes harder to sell. Tencent's $400 million share sale also adds near-term supply pressure, which the $300 million buyback is meant to absorb.
The signal: The $700 million raise ranks in the 95th percentile among post-IPO convertible rounds in Chinese media over the past four years, across a sample of 54 deals. For a listed Chinese platform, it shows how convertibles remain a favoured tool to fund AI ambitions without draining cash.
Read more: cryptobriefing.com
Image credit: Generated with Gemini
