LeTV, the fast-moving Chinese group with interests stretching from streaming video to smart phones, is to buy a 20% stake in TCL Multimedia, part of Chinese TV manufacturer TCL Corporation.
The deal, which represents another marriage of hardware and content in Asia, is valued at US$293 million (HK$2.27 billion.)
LeTV is buying shares in the Hong Kong-listed TCL Multimedia through its LeTV Zhixin subsidiary which is primarily engaged in the sale of smart terminals, Internet super TVs and set-top boxes.
According to an announcement, LeTV will provide TCL Multimedia with access to its content, cloud platform, e-commerce and big data, , while TCL Multimedia will provide LeTV with its supply chain control, access to its industrial manufacturing and design facilities as well as its software and hardware R&D platform and offline service system. The two companies will also cooperate on product development, design and innovation, user operations and overseas expansion.
LeTV envisages a seamless entertainment and sports ‘ecosystem’ that stretches to phones, smart TVs, and even cars.
Its sister company LeVision Pictures recently struck development, production and investment deals in ten Hollywood movies including Lionsgate’s upcoming “Kings of Egypt.”
"The partnership with Letv is an important step in TCL Multimedia’s transition to the internet. We look forward to creating a win-win situation by combining Letv’s strength and ability in smart TV applications and services including products and business models with TCL Multimedia’s leadership position in the TV industry,” said TCL Corporation chairman and CEO Li Dongsheng.
TCL ranks third globally with its TV shipments reaching an annual 17 million units. LeTV’s SuperTV sales volume is expected to double to 3 million units this year, the company said.