Alibaba Backed Bilibili Restructures Gaming Division To Boost Revenue

Anusuya Lahiri
1 min read
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In this article:

  • Bilibili Inc (NASDAQ: BILI) CEO has taken over direct supervision of the company's gaming department as the Alibaba Group Holding Limited (NYSE: BABA)-backed company looks to boost revenue growth.

  • The human resource department of Bilibili emailed employees that those in its gaming department will report to Chen Rui, the company's CEO, and no longer Zhang Feng, a senior vice president at the company, Reuters reports.

  • Investors interpreted it as an effort by Bilibili to refocus on its gaming business, which had been a significant revenue generator that had struggled in recent years.

  • Also Read: TikTok Is Bullish On Gaming Despite China Crackdown, To Launch Standalone Gaming Channel

  • When Bilibili went public on the Nasdaq in 2018, gaming accounted for about 80% of its total revenue.

  • But Bilibili struggled to find new hits over the years while other Chinese companies, including NetEase, Inc (NASDAQ: NTES) and miHoYo, continue to gain ground.

  • Bilibili's gaming revenue declined 15% in the quarter that ended June 2022, accounting for about 21% of its total revenue.

  • Bilibili struggled to profit despite having more than 300 million monthly users on its video platform.

  • China's gaming regulator granted publishing licenses for 73 online games, including titles belonging to NetEase and other developers.

  • Price Action: BILI shares traded higher by 3.84% at $12.16 premarket on the last check Monday.

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