Chinese social network YY has acquired Singapore-based social media startup Bigo in a deal worth US$1.45 billion.
YY was the lead investor in Bigo’s US$272 million fundraising round last June, acquiring a 31.7 percent stake. As part of that investment it obtained the rights to purchase a majority stake in the startup, which is behind popular live-streaming app Bigo Live, video-sharing app Like, and gamecasting platform Cube TV.
Combined with its existing Bigo stake, YY’s acquisition of the remaining 68.3 percent of issued and outstanding shares values the startup at around US$2.13 billion.
David Li, co-founder and CEO of Bigo and YY / Photo credit: YY / Bloomberg
The relationship between Bigo and YY goes back a lot farther, however. Bigo co-founder and CEO David Li – who joined last June’s series C round in an individual capacity – is also founder and CEO of YY. Bigo’s other co-founder and CTO Hu Jianqiang is a YY alumnus.
See: He left NetEase to build one of China’s first livestreaming startups
Perhaps in light of these intertwinements between the two parties, YY highlighted in a statement that its buyout of Bigo “was approved by the independent audit committee of YY’s board of directors, which considered the arms length negotiation background as well as the fairness analysis conducted by its [externally appointed advisor] and was approved by YY’s board of directors.”
Li said he launched Bigo in 2016 in an effort to show that a particularly Chinese tech business idea – that of livestreaming and short-video sharing – could make waves outside of the Middle Kingdom. Bigo claims to have users in around 100 countries across Southeast Asia, South Asia, the Middle East, and the Americas.
Editing by Judith Balea
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
