Chinese Internet giant Baidu has bought a $58 million stake in Hong Kong-based theater chain SMI to expand its online-to-offline (O2O) entertainment business into theaters in China.
The investment will give Baidu a role in ticket services, map search and mobile-based location services, and will develop new services such as online crowdfunding by Baidu and promoting a loyalty card issued by SMI and Baidu.
Hong Kong-listed SMI said in a statement it was raising $114 million (HKD $887 million) through the subscription and share placing, which will be used for capital expenditure.
Baidu is buying the stake as part of a group that also includes HOPU Investments and Tianan Property Insurance Company.