Beijing Enlight Media, one of China’s largest film and television content suppliers, said today it will pay 230 million yuan, or $37 million, in cash for a 20% stake in Guangzhou Xianhai Internet Technology, an online game developer.
The move is aimed at helping Enlight expand into China’s online and mobile game industry and adapt its movies into online games. The announcement comes amid a flurry of investments by China’s Internet and entertainment companies looking to expand their mobile revenues. China has the world’s largest number of mobile phone users.
Xianhai’s revenue in 2013 was 158 million yuan, or $25 million, and net profit was 57 million yuan, or $9 million. According to its website, Xianhai plans to expand from online games into mobile games this year. China’s Internet and mobile game sales in 2013 rose to 83 billion yuan, or $13 billion, an increase of 38% from a year earlier. Trade in Enlight’s stock at China’s Shenzhen Stock Exchange has been suspended since March 3 in connection with an acquisition plan.
Chairman Wang Changtian ranked No. 764 on the 2014 Forbes Billionaires List with wealth of $2.3 billion.
Enlight is best known for its hit movie “Lost in Thailand.” International entertainment companies including Disney and Dreamworks are also targeting growth in China. Disney just last week said the total investment in the Shanghai Disney Report due to open next year in the Shanghai would be increased by $800 million more than previously announced to a total of $5.4 billion.