Chinese tech giant Tencent teams up with People’s Daily subsidiary on short video production joint venture
The joint venture will also focus on live broadcasting of news, says People.cn
Tencent Holdings is teaming up with a People’s Daily subsidiary and two other Chinese companies to set up a short video producing joint venture, according to stock filings by two of its partners on Friday.
The four companies plan to set up the joint venture with a registered capital of 75 million yuan (US$11.8 million), according to separate filings by People.cn and Beijing Gehua CATV Network to the Shanghai Stock Exchange late on Friday.
The joint venture will focus on the production of short videos and live broadcasting of news and other relevant content, said People.cn.
People.cn, the listed online portal of the ruling Communist Party’s mouthpiece, People’s Daily, will have a 60 per cent stake in the joint venture, valued at 45 million yuan. Tech giant Tencent will take a 21.2 per cent stake for 15.9 million yuan through a subsidiary, according to the filings.
Beijing Gehua CATV Network, which builds, manages and maintains cable television networks, will have a 6.4 per cent stake valued at 4.8 million yuan.
The remaining stock will be held by a Beijing-based, state-backed investment fund with a focus on the telecommunications, media and technology sectors.
People.cn will set up a designated video channel on its homepage, while Tencent will also establish a similar designated channel on its news portal and app. Beijing Gehua CATV Network will distribute the content through its cable network, according to People.cn.