Chinese short-video platform Kuaishou Technology HKEX:1024 said on Thursday it will sell a 31.67% stake in its unit Beijing Kling for about 19.05 billion yuan ($2.81 billion) to companies and independent investors.
The management valued Beijing Kling, which operates its large video generative model Kling AI, at around $15 billion before the transaction.
Here are some details:
The parties have agreed that the total subscription price will not exceed 20.45 billion yuan, thus allowing the firm to bring in an additional investor within the next two months.
Two companies controlled by Tencent HKEX:700 are among those investing in Beijing Kling.
Following the restructuring, Beijing Kling will continue to hold Kuaishou's AI-related assets.
Kuaishou said in May it would seek external financing as part of a restructuring of Kling AI's assets.
($1 = 6.7886 Chinese yuan)