Alibaba Backed Bilibili Restructures Gaming Division To Boost Revenue - Bilibili (NASDAQ:BILI)

Bilibili Inc BILI CEO has taken over direct supervision of the company's gaming department as the Alibaba Group Holding Limited BABA-backed company looks to boost revenue growth.
The human resource department of Bilibili emailed employees that those in its gaming department will report to Chen Rui, the company's CEO, and no longer Zhang Feng, a senior vice president at the company, Reuters reports.
Investors interpreted it as an effort by Bilibili to refocus on its gaming business, which had been a significant revenue generator that had struggled in recent years.
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When Bilibili went public on the Nasdaq in 2018, gaming accounted for about 80% of its total revenue.
But Bilibili struggled to find new hits over the years while other Chinese companies, including NetEase, Inc NTES and miHoYo, continue to gain ground.
Bilibili's gaming revenue declined 15% in the quarter that ended June 2022, accounting for about 21% of its total revenue.
Bilibili struggled to profit despite having more than 300 million monthly users on its video platform.
China's gaming regulator granted publishing licenses for 73 online games, including titles belonging to NetEase and other developers.
Price Action: BILI shares traded higher by 3.84% at $12.16 premarket on the last check Monday.