Strategic Alliance! YY Completes Acquisition of Bigo | Gaorong Ventures News

On March 5, 2019, JOYY Inc. (NASDAQ: YY), a leading live-streaming social media platform in China, announced its acquisition of the remaining approximately 68.3% of all issued and outstanding shares of Bigo Inc. ("Bigo"). The total transaction value was $1.45 billion, comprising $340 million in cash, 38,326,579 Class B ordinary shares of YY issued to YY Chairman and Acting CEO David Li, and 313,888,496 Class A ordinary shares of YY issued to David Li and other shareholders. Prior to this transaction, YY held approximately 31.7% of Bigo's shares.

Bigo is a fast-growing global technology company. Headquartered in Singapore, Bigo operates BIGO Live, a leading global live-streaming platform, and LIKE, a leading global short-video social platform, alongside multiple other mobile internet products. Bigo has created video-based online communities for young users worldwide. Having established strong positions in Southeast Asia, South Asia, the Middle East, the Americas, and other markets, Bigo has paved the way for further global expansion.

David Li, Chairman and Acting CEO of YY, stated: "We are very pleased to announce the completion of the Bigo acquisition. This is a significant milestone for the YY Group, demonstrating our confidence in and commitment to our globalization strategy. In 2018, Bigo achieved rapid user growth alongside significant commercial progress, making it one of the fastest-growing internet companies globally. While BIGO Live continues to consolidate its leadership in entertainment live-streaming services outside China, LIKE has also achieved rapid user growth and increasing watch time in the short-video market. The combination of YY's and Bigo's strong businesses in China and overseas will help us create higher-quality live-streaming content, expand our international influence, and deliver world-class user experiences to our global user community, enabling YY to become a world-leading video-based social media platform company."

Gaorong Ventures was an investor in Bigo's first external financing round and witnessed Bigo's rapid growth over the past several years. Sam Gao, Founding Partner of Gaorong Ventures, commented: "The Bigo team has deeply embedded itself in local pan-entertainment markets in Southeast Asia, South Asia, and other regions. Through its product matrix spanning live-streaming, short-video, and other formats, combined with the team's mature commercialization capabilities, Bigo has gained a competitive edge on the global stage. We believe that with the future integration and synergy between YY and Bigo, focusing their collective strengths, they will rapidly become a leading global video-based social entertainment platform."

Gaorong Ventures was also the Series A investor in HUYA Inc., another YY subsidiary. HUYA Inc. listed on the New York Stock Exchange on May 11, 2018.

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