Tag Archives: LeTV

LeTV Internet Information Technology is a Chinese leading entertainment company and the largest online video company in China

GUEST POST: Tencent Alliance with Zhejiang TV Faces Ups, Downs

Bottom line: The new alliance between Tencent and Zhejiang TV reflects the growing strength of China’s big Internet companies in online video, and will benefit but also challenge both sides.

By Lin Nanwei

Tencent, Zhejiang TV in new partnership

Last week’s World Internet Conference in the scenic water town of Wuzhen attracted media attention due to attendance by most of the sector’s top leaders, even though few said anything substantial. But Tencent (HKEx: 700) Chairman and CEO Pony did a little homework before he came.

The day before the curtain came down on the big event, Ma appeared at another event in nearby Hangzhou to announce a strategic partnership between Tencent and Zhejiang Television & Radio Group, the province’s largest state-owned TV broadcaster. According to reports, the 2 sides will focus on cooperation in development of content, channels and promotional activities. (Chinese article) Read Full Post…

E-COMMERCE: Alibaba Sells Film with Disney, Debt with Huarong

Bottom line: Alibaba’s new Disney tie-up is unlikely to gain much traction due to overcrowding in China’s Internet video market, while its tie-up to sell $8 billion worth of bad debt from asset manager Huarong looks mildly positive.

Alibaba in streaming tie-up with Disney

E-commerce giant Alibaba (NYSE: BABA) is in a trio of headlines as we head into the year-end holidays, led by a new tie-up with Disney (NYSE: DIS) as it looks to leverage its growing stable of media assets. But in a sign of how much attention the company now attracts, the other 2 stories in the headlines aren’t really ones that Alibaba would care to trumpet too much.

The larger of those is mildly positive, with media reporting that Alibaba’s Taobao C2C marketplace is teaming up with one of China’s leading bad asset sellers to auction off $8 billion in soured loans. The other headline is one that’s becoming a small headache for Jack Ma, and involves Evergrande Taobao the soccer team that he co-owns. That story has one of Japanese car maker Nissan’s (Tokyo: 7201) China joint ventures suing the club for breach of contract related to a high-profile sponsorship dispute. Read Full Post…

News Digest: December 12-14, 2015

The following press releases and media reports about Chinese companies were carried on December 12-14. To view a full article or story, click on the link next to the headline.

  • Alibaba (NYSE: BABA) Buying South China Morning Post, Aiming to Influence Media (English article)
  • LeTV (Shenzhen: 300104) Invests 1.9 Bln Yuan in TCL Multimedia (HKEx: 1070) (Chinese article)
  • Fosun Says Chmn Guo Assisting Govt Investigation, Still Making Company Decisions (Chinese article)
  • Tsinghua Unigroup Invests 13.5 Bln Yuan in 2 Taiwan Chip Testing Companies (Chinese article)
  • Trina (NYSE: TSL) Withdraws from EU Price Deal, to Supply EU From Overseas Facilities (PRNewswire)

FUND RAISING: Mango Pares Back Plans, Lufax Thinks Big

Bottom line: Mango TV’s scaled-back new funding reflects the potential and stiff competition in China’s online video market, while Lufax’s Chinese and foreign roots could make it a name to watch in the emerging private financial services sector.

Mango TV nears $1.5 billion funding

Two fund-raising deals likely to be among China’s largest next year are in the headlines as we close the week, led by a major paring back of plans by upstart online video company Mango TV. The other news is shedding more light on aggressive expansion plans by Lufax, another upstart in the peer-to-peer (P2P) lending space, which is in the process of seeking $1 billion in new funds.

Let’s jump right in with the Mango deal, which is reportedly close to wrapping and will see the company raise $1.5 billion. (Chinese article) I’m admit I’m not completely sure that the figure is US dollars, as the Chinese report doesn’t specify if it’s dollars or Chinese yuan. But the US dollar figure is more consistent with reports last month, which said Mango was seeking to raise up to 20 billion yuan, or about $3.2 billion in its second funding round. (previous post) Read Full Post…

News Digest: December 4, 2015

The following press releases and media reports about Chinese companies were carried on December 4. To view a full article or story, click on the link next to the headline.

  • Mango TV to Complete 1.5 Bln Yuan Funding Round in January (Chinese article)
  • Baidu Music (Nasdaq: BIDU), Taihe Music Group to Merge into New Company (English article)
  • Aston Martin Turns to China’s LeTV (Shenzhen: 300104) to Soup Up Supercars (English article)
  • iKang Healthcare (Nasdaq: KANG) Adopts Shareholder Rights Agreement (GlobeNewswire)
  • Didi, Lyft Entering Four-Way Alliance to Take on Uber for Rides (English article)

MEDIA: CMC Follows Beijing Sports Call with UK Soccer Buy

Bottom line: CMC’s purchase of a stake in the parent of the Manchester City soccer club looks at least partly political, and could be followed by similar purchases by Alibaba or LeTV next year as companies try to earn goodwill from Beijing.

CMC buys into global soccer

Anyone who thought the entrepreneurial China Media Capital (CMC) might represent a new breed of market-oriented Chinese investors will be disappointed to learn the company’s latest purchase looks quite political and aimed at pleasing Beijing. That investment has the Shanghai-based CMC teaming up with the financial giant Citic Group, another highly political animal, to buy 13 percent of a company whose prize asset is the Manchester City soccer club.

I’m probably being slightly unfair in calling this move purely political, since China is certainly a soccer-crazy country that could benefit from the expertise that CMC will get through its investment in City Football Group (CFG). But the timing of this deal looks quite suspicious, as it comes just weeks after Chinese President Xi Jinping visited the team during a tour of Britain, where he released a plan to turn China into a soccer powerhouse. Read Full Post…

FUND RAISING: Alibaba’s Second-Hand Spin-Off, LeTV’s Unnamed Investor

Bottom line: Alibaba’s spin-off of its C2C marketplace for second-hand goods could reflect a new trend for big Internet firms to separately run individual assets, while LeTV may have provided most of the money in the first funding round for its smartphone unit.

Taobao spins off Xianyu

A couple of fund-raising headlines are spotlighting emerging trends in China, including a nascent move by big companies to spin off smaller units as separately run and funded entities. That move was center stage in new reports that e-commerce juggernaut Alibaba (NYSE: BABA) is spinning off its Xianyu marketplace that specializes in sales of second-hand goods between consumers.

The second headline comes from online video high-flyer LeTV (Shenzhen: 300104), and spotlights a trend that shows rapidly cooling investor sentiment towards overheated sectors like video and smartphones. That news has LeTV declining to name any of the backers in the first funding round for its fledgling smartphone unit, hinting that no serious investors were interested in this particular opportunity that raised $530 million. Read Full Post…

News Digest: November 27, 2015

The following press releases and media reports about Chinese companies were carried on November 27. To view a full article or story, click on the link next to the headline.

  • LeTV (Shenzhen: 300104) Raises $530 Mln in 1st Funding Round for Smartphone Unit (Chinese article)
  • Taobao to Spin Off C2C Second-hand Goods Trading Platform Xianyu – Source (English article)
  • Bank of Qingdao (HKEx: 3866) HK IPO Gets Chilly Reception, Calls on Friends (Chinese article)
  • Citic Securities (HKEx: 6030) Says Being Probed for Securities Violations (HKEx announcement)
  • Uber Says China to Pass US as Company’s Largest Market by Year-End (Chinese article)

SMARTPHONES: Xiaomi, LeTV Stars Fade Further

Bottom line: Xiaomi’s newest product launch focused on cheap smartphones and LeTV’s scrapping of an IPO for its film-making unit reflect fading prospects for these former superstars due to stiff competition.

Xiaomi rolls out more bargain phones

Former Chinese superstars Xiaomi and LeTV (Shenzhen: 300104) are in the headlines with new setbacks, reflecting the meteoric rises and equally fast falls that China is producing in its own version of the dot-com bubble. But this bubble has distinctly Chinese characteristics, and is coming in a more mature Internet where rampant competition and copycatting make it very difficult to make profits.

The first headline has Xiaomi rolling out 3 of its newest smartphones that are decidedly low-end, representing a big setback for the company’s drive to produce higher-end models that have fatter profit margins. The second headline has LeTV scrapping a plan to make a separate listing for its filmed entertainment unit, a year after hyping a new IPO that it hoped could mimic the meteoric rise in its own stock earlier this year. Read Full Post…

News Digest: November 25, 2015

The following press releases and media reports about Chinese companies were carried on November 25. To view a full article or story, click on the link next to the headline.

  • Apple (Nasdaq: AAPL) Seeks to Launch Apple Pay in China by February – Sources (English article)
  • Unicom (HKEx: 763) Drafts Proposal to Share 4G Network with China Telecom – Reports (English article)
  • China’s HNA Agrees to Buy 24 Pct of Brazilian Airline Azul (English article)
  • LeTV (Shenzhen: 300104) Drops Listing Plan for Filmed Entertainment Unit (Chinese article)
  • Dangdang (NYSE: DANG) Announces Unaudited Q3 Results (PRNewswire)

MEDIA: China Entertainment Draws Billions From Fox, Others

Bottom line: Chinese video- and entertainment-related companies will continue to attract big investments and valuations over the next year due to their strong growth potential, even as sentiment cools towards other new media companies.

Mango TV eyes major new funding

Investor sentiment may be rapidly cooling towards many Internet areas in China, but entertainment is one that still remains quite popular. That’s my latest read on the markets, following news of major new financing for 2 companies and a new Sino-foreign co-production deal in the hot video and movie-making sectors.

Up-and-coming online video operator Mango TV is at the center of the biggest news in terms of value, with media reporting it’s aiming to raise a hefty 20 billion yuan ($3.2 billion) in just its second funding round. Movie ticket booking app Weiying Shidai is in a smaller but still sizable fund-raising headline, with reports that it has just raised 1.5 billion yuan in its third funding round. Last but not least is word of a film co-production deal between local studio Huace (Shenzhen: 300133) and global giant Twenty-First Century Fox (Nasdaq: FOX). Read Full Post…