Mainland developer China Vanke leads US$1.5 billion investment in media group CMC
New round of financing values company at 40 billion yuan
CMC Inc, a media and entertainment company controlled by mainland media tycoon Li Ruigang, has raised 10 billion yuan (US$1.5 billion) in A-round financing from China Vanke, who co-led this round along with two existing investors – Tencent Holdings and Alibaba Group Holding.
The completion of the latest round of financing gives the company a valuation of about 40 billion yuan, CMC said in a statement Tuesday.
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Other investors in this funding round included CMB International Capital, the private equity investment arm of Shenzhen-headquartered China Merchants Bank.
China Vanke, which is a new investor in CMC and one of the largest residential property developers in China, did not reveal its investment.
CMC also did not say how it plans to use the new capital.
CMC, which was known as CMC Holdings before a name change, was set up at the end of 2015 by Li, former president of Shanghai Media Group. He is also dubbed China’s Rupert Murdoch, for his vast experience and interests in the media sector.
Over the past three years CMC has invested in a wide array of media and entertainment businesses, including Hong Kong’s longest running free-to-air broadcaster Television Broadcasts, as its largest shareholder.
In 2015, China Media Capital, an investment fund controlled by Li, formed a production and distribution joint venture headquartered in Hong Kong with Warner Brothers Entertainment, called Flagship Entertainment Group, to develop Chinese language films for global distribution.
In print, CMC has invested in Caixin Media, a financial media group that focuses on providing investigative financial news and content. CMC’s investment in Caixin Media, which was made in 2013, has since enabled the company to diversify into new business areas.
For example, in February this year, Caixin Global, part of Caixin Media, said it would team up with Citic Capital’s private equity arm to buy the financial information and data unit of Euromoney for US$180.5 million.
Alibaba owns the South China Morning Post.