Tencent, a social media company, and an investment firm under Alibaba creator Jack Ma combine 2.8B yuan as an investment, raising their Huayi Brothers Media Corp stakes, while Chinese technology giants push entertainment.
Huayi, producer and distributor of television programs, movies, and music stated that it will issue a 145 million worth of shares so as to raise a sum of 3.6B yuan or 588 million dollars in the Shanghai stock exchange. The company has plans for using cash for some other projects a new movie, including the repayment of bank loans.
Ma’s investment company will purchase 61.76M shares. China’s biggest gaming and social network company, Tencent will subscribe 51.55M shares.
Both entities will each own about 8.08% stake in Huayi, higher by 4.03% for Ma and 4.86% for Tencent. Thus, they will become the second-largest Huayi shareholders after company senior executives.
Huayi stated that the mobile internet business is growing fast, while the relationship between internet companies and media firms is similarly increasing. The relationship with Tencent and Alibaba will strengthen the progress in those areas, respectively.
Strategic agreements with Tencent and Ma have also been signed by Huayi, hoping it will use links of some of the largest internet companies in China so as to build its presence within the electronic commerce, movie industry, and online entertainment, including its presence abroad as Huayi has planned on investing between 120 and 150 million dollars in Studio 8, which is a film industry founded by Jeff Robinov, former president of Warner Brothers.