Tencent, JD.com eye TV business with investment in cash-strapped LeEco unit

April 19, 2018
Industry News
Content Provided By:


------------
Iris Deng
iris.deng@scmp.com
Celia Chen
celia.chen@scmp.com

Chinese internet giants Tencent and JD.com will invest in the television-making unit of the embattled entertainment conglomerate LeEco to complement their content and online retail strategies. 

Tencent and JD.com intend to invest 300 million yuan (US$48 million) apiece to each receive a 2.5554 per cent stake, according to a document filed to Shenzhen Stock Exchange on Wednesday by the unit’s parent company Le.com, the Shenzhen-listed arm of debt-ridden LeEco.

Chinese television maker TCL and home appliance retailer Suning were also among the investors, making investment offers of the same size, according to the filing. 

After the new fund injections Le.com will remain the biggest shareholder of the unit, officially known as Leshi Internet Information and Technology Corp, with a 33 per cent stake. 

The debt-ridden Le.com encountered cash-flow problems in late 2016 stemming from an over-expansion of its business into smartphones, sports entertainment and even electric cars. In July last year Sun Hongbin, chairman of the country’s fourth largest developer Sunac China, replaced LeEco founder Jia Yueting as chairman in an effort to turn the indebted company around. After committing more than 16 billion yuan in investments and loans last year, Sun stepped down last month after he refused to make further financial commitments.
Continue Reading



 
About South China Morning Post 

The South China Morning Post is a leading news media company that has reported on China and Asia for more than a century with global impact. Founded in 1903, SCMP’s headquarters are in Hong Kong, where it is the city’s newspaper of record. Our teams span Asia and the United States, working together to connect with news consumers around the world. We are committed to informing and inspiring through journalism of the highest standards. 

Against the backdrop of shifting discovery and consumption behaviour, SCMP reaches users across distributed media platforms such as SCMP.com, smartphone and tablet apps, social media and messaging platforms, as well as our flagship newspaper. ​In addition to the South China Morning Post broadsheet, we also publish the Sunday Morning PostPost MagazineSTYLE andThis Week In Asia​​SCMP.com, attracts millions of readers and generates tens of millions of page views per month, providing a perfect channel for our advertisers to reach a worldwide audience.

For further information, please contact us