![]() Investment in Zhangyue aligns with ByteDance’s aggressive moves in the booming space. Among them are Wuli Culture, Xiuwen Technology, Dingtian Culture, Tadu Literature, and Jiuku Literature. Since the end of last year, it has invested at least six companies in the industry. It operates a reading app Tomato Reading, which claimed 10 million daily active users as of April thanks to its free model. There are early signs of the deep-pocketed ByteDance’s thrust into the field of online literature in China. ![]() In addition to online literature, Zhangyue also provides audio books and e-reader devices. It reported total revenue of RMB 980.2 million (USD 147.52 million) for the first half of 2020, up 8.96% year-on-year (YoY), and a net income of RMB 110.50 million (USD 16.63 million) in the same period, which represented an annual growth of 72.82%. Shanghai-listed Zhangyue’s stock soared to RMB 30.36 (USD 4.57) this morning when the market opened, reaching the daily growth cap of 10%. “ByteDance will provide more support to Zhangyue Technology in terms of advertising, commercialization services, content licensing, search, and platform resources.”įounded in 2008, Beijing-based Zhangyue has over 170 million monthly active users on its platforms, which include its flagship namesake app, which allows users to read unlimited books online or to download them to reading devices, and the Zhangyue Campus App, a similar concept focusing on textbooks. “The two companies will work together to develop the reading business and strengthen cooperation in content production, commercialization, placement, and operation,” said the announcement. Earlier in March, Zhangyue introduced Chinese search engine giant Baidu as its strategic investor in a new issuing of shares, but the deal was shelved in August, without a detailed explanation. ![]() Zhangyue is expected to generate RMB 470 million (USD 70.75 million) in business deals with ByteDance in the coming year. The online literature arena, where Tencent-controlled China Literature (HKG: 0772) is a leading player, has recently seen a big push from ByteDance.įollowing the deal, ByteDance, via wholly-owned subsidiary Liangzi Yuedong Technology, will pay Zhangyue CEO Cheng Xiangjun and founder Zhang Lingyun RMB 550 million (USD 82.79 million) each. TikTok owner ByteDance has invested RMB 1.1 billion (USD 165.58 million) in online reading firm Zhangyue Technology (SH:603533), or iReader Technology, in exchange for an 11.23% stake in the latter, eyeing a stronger tie-up with the original content developer, according to Zhangyue’s filing with the Shanghai Stock Exchange on Wednesday.
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