Shenzhen Stock Exchange, 10/18/11
Chinese online video site LeTV (Leshi) (300104.SZ) announced today that on October 17, the company signed an agreement with video site Tudou (Nasdaq: TUDO) to establish a new joint venture. Of the RMB 1 mln in registered capital used to fund the venture, 51% (RMB 510,000) has been put forward by LeTV, with the remaining RMB 490,000 having come from Tudou.
Temporarily operating under the name Shanghai Tudou-LeTV Entertainment (tudou.letv.com), the JV will have a board of directors comprised of four seats to be split between and filled by the two companies, in addition to the positions of board chairman and deputy board chairman.
The new JV will primarily be involved in the purchase and sale of online rights for domestic films and TV dramas.