(Yicai Global) June 5 -- Guangzhou Acfun Network Technology's shareholder Chinese All Digital Publishing Group, CADP, today entered into an agreement with Tencent Holdings-backed Beijing Kuaishou Technology to sell its entire stake in the operator of online barrage video platform to the latter, CADP said in a statement.

Under the share transfer agreement, Beijing-based digital content publishing firm CADP has agreed to sell its stake in Acfun to Kuaishou for CNY140 million (USD22 million). CADP will not retain any shares in Acfun after the completion of the deal and is not obliged to invest in the company.

Kuaishou, which runs online media and sharing services, has completed the full takeover of Acfun, media reported widely, but details of the deal have not been made public. Kuaishou confirmed the deal, technology news outlet 36kr reported earlier.

China's tech giants aim to further foray into the fast-growing online video market. Tencent and rival Bytedance Technology, the company behind the popular short video platform, Douyin, and news aggregator Jinri Toutiao, are in stiff competition in a market that is estimated to hit USD15 billion by 2020, according to market intelligence firm IHS Markit. Both companies have recently sued each other over allegations of defamation and anti-competitive behavior.

CADP closed a deal in November 2016 to acquire a 13.5 percent stake in Acfun for CNY250 million, said the statement. It made an upfront investment of CNY138.5 million. However, Acfun has failed to meet the preconditions specified in the agreement. Therefore, CADP has not paid the full contract amount.

Editor: Mevlut Katik