ByteDance, the parent company of short-video sharing platform TikTok and its Chinese version Douyin, recently agreed to invest 1.1 billion yuan (US$165.6 million) for an 11.23% stake in Chinese e-book reader and publisher Zhangyue((SH:603533), also known as iReader.
The deal will be done through ByteDance’s wholly-owned subsidiary company, Beijing Liangzi Yuedong Technology, according to Zhangyue’s announcement on its official website.
Founded in 2008, Zhangyue has a current market value of 12 billion yuan and 110 million monthly active users who read novels, magazines, and anime, as well as listened to audiobooks via the application.
Forming a new education umbrella named Dali Education last week, ByteDance is targeting the burgeoning e-reading market driven by China’s smartphone penetration. And Zhangyue will get ByteDance support in areas like ad buying, monetization, and other technologies.