Citing sources in the VC industry, Chinese tech site 36Kr has reported that e-commerce conglomerate Alibaba Group and Hunan Satellite TV have jointly purchased P2P streaming video platform PPLive (PPTV) for USD 400 mln, with the deal having already been finalized.
According to industry sources, Alibaba Group was hesitant to expend the full USD 400 mln to purchase PPTV, and as such, Hunan Satellite TV stepped in to make up the difference and allow the two companies to jointly purchase PPTV. PPTV landed USD 200 mln in its most recent round of funding, valuing the company at USD 700 mln, although PPTV ultimately did not receive the full USD 200 mln figure from investors, presumably due to a number of performance factors.
Editor's Note: Senior management at PPTV have denied the acquisition rumor. Alibaba has refused comment on the matter. For more information on this topic, please see "Rumor: Alibaba to Announce PPTV Acquisition Soon," MD 7/29/13 and "Rumor: Alibaba in Talks to Acquire PPTV," MD 6/03/13 issues.