Tencent in rare stock market investment

With an eye on the growing live-streaming prize, Tencent said Wednesday it will pay $318 million for an additional 8.3% stake in Chinese video streaming app Bilibili, making a rare investment in a publicly listed company. 

The Chinese internet giant, already an existing shareholder with a 3.7% stake, will buy 25.1 million newly issued American Depositary Shares in the Nasdaq-listed company at $12.67 each, representing a discount of 4.8% to the stock’s $13.31 Tuesday close.

Tencent’s endorsement was positively received by the market. Despite selling new shares at a discount that would dilute the interest of existing shareholders by 11%, Bilibili saw its share price...