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Shares of Chinese Podcast Firm Lizhi Soar as Clubhouse Goes Viral

February 3, 2021 5:58 am

Beijing (PingWest)—The strong growth of the invite-only audio social media app Clubhouse has increased investors' bets on similar products. Shares of Lizhi, the Nasdaq-listed Chinese podcast firm, once soared by more than 70%, closing at $5.16 on Tuesday.

Similar to an unfiltered live podcast, Clubhouse allows users to create or jump into different "rooms" for real-time discussions on various topics after logging in. The company is still in its infancy, and most discussions involve technology, entrepreneurship and other Silicon Valley issues.

As Tesla CEO Elon Musk announced on Twitter on Monday that he would start a room on the platform, the company, valued at $1 billion, was noticed by more people and ushered in the latest round of explosive user growth. 

Since the company has not yet been listed, many investors in the secondary market are looking for relevant investment opportunities, therefore Lizhi, which also has voice and social functions, has become a target.

Lizhi was founded in 2010 and launched the Lizhi app in 2013, which allows users to create and host their own podcasts, live streaming performances, interact with other users, and follow their favorite hosts and channels.

The company went public on Jan. 16 2020, and raised $45 million by offering 4.1 million shares at $11.

According to Lizhi's financial report for the third quarter of 2020, net income increased by 10% year-on-year to $53.2 million. The total number of average monthly mobile active users reached 56.2 million, a year-on-year increase of 21%.