Lin Zhenyang slapped his thigh and thought of this two-dimensional community that has great influence among Generation Z.
At first, he thought Zhang Yida was too reckless by investing heavily in the company based on a unicorn valuation of US$1 billion.
Looking back now, this investment is very worthwhile, as the platform is filled with extremely young users.
Youth means the future, and there is plenty of time to slowly look for business realization.
Ruixiang also invested a lot in Bilibili. In 2015, it invested US$12 million in Series A financing and took 12% of the shares.
In 2016, it joined forces with Zhonghe Group to invest US$200 million, and also used US$401 million to acquire old shares from other investment institutions.
Bilibili also has a US$200 million "Cultural Renaissance" industry investment fund, which invests in various content industries such as domestic original animation, cartoons, games and IP.
As an LP, Ruixiang invested US$198 million in this fund.
Ruixiang and Zhonghe invested 811 million U.S. dollars in succession, which can be regarded as a substantial investment in Bilibili.
After the merger between Ruixiang and Zhonghe, Ruixiang’s shareholding in Bilibili also reached 60.08%, but it did not interfere too much in the operation of Bilibili.
Because we have reached an agreement with the small management team of Chen Rui, Xu Yi, and Li Ni, their management seats and the operational direction of the platform will not be shaken within five years.
Now that these words have been said and put on paper, Zhang Yida will naturally not violate the agreement.
Of course, this all has a prerequisite: the platform is growing rapidly and there are no major operational errors.
Otherwise, Ruixiang has the right to use its veto power.
Lu Qi asked in confusion, "What about station B? Isn't it a video platform?"
Zhang Lan is in charge of content, has had a lot of dealings with Bilibili, and knows the details of the other party very well.
It was normal for the elderly Lu Qi not to understand. She smiled and explained: "Bilibili started with animation and game-related video content. After attracting and retaining users, games, live broadcasts, and advertising are the three main monetization methods.
Games in particular accounted for more than 80% of their revenue last year, with live streaming and advertising only in single digits.
So it’s not wrong to say that Bilibili is a game company with a community and video veneer.
However, it cannot be simply understood as a game company. Its ecology is richer and more sticky, and more than 90% of its game players come from its community users."
Lu Qi understood now and asked: "How are their current games doing?"
Zhang Lan replied with a smile, “Their gaming business was first intermodal, which started as early as 2014.
At that time, "Millions of King Arthur" and "Honkai Impact 2" were promoted, and certain advertisements would be placed on station B, and then the UP owner would cooperate in the promotion, and the effect was very good. Naturally, station B began to engage in game intermediary business.
Later, I started to work as a sole agent and represented the two-dimensional mobile game masterpiece "FGO". The name of Bilibili Game Company began to be talked about by outsiders.
Last year, the national version of "FGO" was updated, and it also topped the App Store's best-selling list for the first time, edging out the all-powerful "Honor of Kings".
The single-quarter revenue of "FGO" is 480 million, which basically accounts for 55% of the revenue of Bilibili or more. It can be said that one game supports the company.
In addition, there are other good games. For example, "Azur Lane" ranked among the top ten on the iOS best-selling list when it was first launched. It contributed more than 120 million yuan in revenue in the first month, and has been stable at a monthly revenue of around 50 million yuan since then.
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In addition to intermodal transportation, agency, and self-research, they are also doing distribution.
Up to now, Bilibili Game Center has launched a total of 183 games, including 177 mobile games, 3 web games, and 3 client games.
It also invested in 33 game companies and established the e-sports club BLG.
Although the revenue from games is not as high as ours, only 2 billion a year, its layout is richer than ours."
Zhang Yida nodded, Bilibili is a good player in gaming. Judging from the revenue level, it has basically entered the top ten in the country, only worse than the established manufacturers such as Perfect World, 37 Interactive Entertainment, and Century Huatong.
"In addition to self-research, I suggest learning from Penguin, investing externally, and acquiring some game companies."
Zhang Lan thought for a while and said.
Zhang Yida nodded, "Draw up a list of investments, preferably ones with expertise in various game subdivisions.
In addition, let the game team quickly establish projects, allocate money if they are short of money, dig for people if they are short of people, and quickly complete a few games.
The income requirements are not high, just 10% of the group’s entire game business revenue will be enough.”
When Zhang Lan heard this, she felt very sad.
The group's game revenue is basically generated by the "PUBG" mobile game and PC game. The casual game distribution platform has only been established for a short time, so it can basically be ignored.
10% of revenue is equivalent to one-tenth of PlayerUnknown's Battlegrounds' revenue, which is 2 billion, catching up with Bilibili.
"Oh, Mr. Zhang, the football game we developed in cooperation with AC Milan is already halfway through development and is expected to be launched next year."
If Zhang Lan didn't say it, Zhang Yida would almost forget it.
Football games are basically dominated by consoles, and I haven’t heard of mobile games making big money.
"How about a strategy game? I think Pig Factory's Luteo Beach is good."
What Lin Zhenyang said reminded Zhang Yida that Ruixiang and Bilibili currently cover FPS, MM, 2D, casual games and other categories.
SLG is also a good game segment. Penguin was still copying other people's pig factories in his previous life!
"The pig factory is relying on the Three Kingdoms!"
Zhang Yida said with a smile, “The historical background of the Three Kingdoms is grand and the story is highly popular.
The Battle of Chibi, Zhuge Liang... a three-year-old child may have heard of it.
We can't pick up people's wisdom. The Three Kingdoms with pig factories are ahead of us. It's good that the quality of our games can surpass others.
If you can't surpass it, you'll be accused of plagiarism, and you won't be able to generate much economic benefit."
Lin Zhenyang nodded. This is indeed the truth. The two IPs of Zhuchangba, Three Kingdoms and Westward Journey are amazing. With this IP, changing the skin and gameplay is a new game.
"Then in China's five thousand years of history, apart from the Three Kingdoms, can't you find any other suitable background for a strategy game?"
Lin Zhenyang was a little unconvinced and began to think about the various dynasties in his memory.
"King Wu defeated Zhou, the Five Hegemons of the Spring and Autumn Period, the Seven Heroes of the Warring States Period, the Chu-Han Struggle for Hegemony, the Eastern Jin and Southern and Northern Dynasties, the Romance of the Sui and Tang Dynasties, and the Five Dynasties and Ten Kingdoms."
Lin Zhenyang stopped when he said this, and waved his hand, "The subsequent dynasties are not interesting. A history of the Song Dynasty is a history of defense.
In the Yuan Dynasty, Genghis Khan defeated the whole world?
This game seems to be pretty good, and European players will definitely like it.”
Zhang Yida smiled and said, "Forget about the Qing Dynasty, didn't there still be three major conquests in the Ming Dynasty?
The Myeongryang naval battle produced by Bangzi seems to be distorting the historical truth. We can make a game based on this background. China, Japan and South Korea all participated in the war.
It can not only restore the historical truth, but also be used to focus on the markets of the three East Asian countries."
Lu Qi coughed and said, "Mr. Zhang, you are now a world-renowned entrepreneur. The label of nationalism is not suitable to label yourself."