Home News ByteDance to pump $170 million into e-book reader Zhangyue – TechCrunch

ByteDance to pump $170 million into e-book reader Zhangyue – TechCrunch

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Whereas brief movies are what drive ByteDance’s revenues and provides the Chinese language startup worldwide recognition, the agency is increasing into quite a few new areas like different tech giants to gas development. It’s dabbled in enterprise software and online learning, and the information got here this week that ByteDance will put money into considered one of China’s largest e-book readers and publishers, Zhangyue.

Zhangyue introduced Wednesday night {that a} ByteDance wholly-owned subsidiary plan to accumulate about 11% of its shares for 1.1 billion yuan or $170 million. The China-listed on-line literature firm, with a present market cap of 12 billion yuan, operates an app the place 170 million users learn novels, magazines, anime and hearken to audiobooks each month throughout H1.

For comparability, its quick rival China Literature, a Tencent spinoff, claimed 217 million monthly users in the identical period.

The companions are focusing on a booming on-line studying market pushed by China’s smartphone penetration. In 2019, customers spent practically an hour a day on their e-reading apps, in response to market insight provider iResearch. The sector is projected to generate 20.6 billion yuan in income, which incorporates subscription and licensing charges, by 2020; that’s up from 6.6 billion yuan in 2015. In the meantime, e-book customers within the nation will attain 510 million this yr, the researcher mentioned.  

The deal will type an in depth alliance between Zhangyue and China’s main digital leisure titan. Beneath the settlement, ByteDance will get to assign one board member to Zhangyue and can be capable to license the writer’s mental property.

In return, Zhangyue will get ByteDance assist in areas like advert shopping for, monetization, and different applied sciences. The success of Douyin, TikTok and newsreader Toutiao, which collectively declare customers within the lots of of hundreds of thousands, have turned ByteDance into a brand new darling for manufacturers and advertisers.

In all, the collaboration will incur 470 million yuan value of transactions between the companions within the following yr, up from 270 million yuan a yr earlier than the fairness acquisition.