South Africa-listed media firm Naspers has agreed to buy a 9.9 per cent stake in Beijing Media Corp, which is seeking $904.67 million through a Hong Kong listing this month.
Naspers is an electronic and print media multinational with operations in pay-television, print media, book publishing and internet services.
It owns 35.84 per cent of Hong Kong-listed Tencent, operator of instant message service QQ.
'[Naspers] has extensive multimedia experience,' said Du Min, executive vice-president and executive director of Beijing Media. But he said his company had not made any detailed strategic co-operation plans with Naspers or MIH, the vehicle through which Naspers will be holding Beijing Media.
Beijing Media, which handles advertisements for newspapers in the Beijing Youth Daily group, is keen to expand its revenue base by entering other media segments, including television.
The firm is planning to set up a joint venture with a mainland partner in the second half of next year and has budgeted $250 million out of its IPO proceeds for investment in the Beijing television industry.
Despite fierce competition and mounting losses in China's television programming sector, Beijing Media is confident it can break even within three years.