While short videos are what drive ByteDance’s revenues and give the Chinese startup international recognition, the firm is expanding into numerous new areas like other tech giants to fuel growth. It’s dabbled in enterprise software and online learning, and the news came this week that ByteDance will invest in one of China’s largest e-book readers and publishers, Zhangyue.
Zhangyue announced Wednesday evening that a ByteDance wholly-owned subsidiary plan to acquire about 11% of its shares for 1.1 billion yuan or $170 million. The China-listed online literature company, with a current market cap of 12 billion yuan, operates an app where 170 million users read novels, magazines, anime and listen to audiobooks every month during H1.
For comparison, its immediate rival China Literature, a Tencent spinoff, claimed 217 million monthly users in the same duration.
The partners are targeting a booming online reading market driven by China’s smartphone penetration. In 2019,