BRIEF: Kuaishou eyes spinoff for Kling AI video creation unit

Short video site operator Kuaishou Technology (1024.HK) said on Tuesday it is considering a potential restructuring that would allow its Kling AI unit to conduct its own fundraising. Kuaishou said it made its statement in response to media reports saying it was studying a plan to separately list Kling, which would allow the video creation unit to obtain its own financing.

Kuaishou said it is still assessing the proposal, added it is still at a “preliminary stage.” Kling AI is part of a growing field of new products that use AI to generate videos using photos and other materials.

On Monday, Late Post reported that Kuaishou was planning to spin off Kling AI at a valuation of $20 billion. The publication reported Kling is currently generating revenue at an annualized rate of $500 million, with the figure rising rapidly as the product gains popularity.

Kuaishou shares were up 3% at HK$53.15 in Tuesday afternoon trading in Hong Kong after the company issued its statement. The stock is down about 17% this year.

By Doug Young

To subscribe to Bamboo Works weekly free newsletter, click here