CITIC Guoan to Invest USD 20 Mln in American VR Broadcaster NextVR
CITIC Guoan Group, 7/01/16
CITIC Guoan Information Industry (000839.SZ), a subsidiary of CITIC Guoan Group, recently announced that it will invest USD 20 mln in cash through its Shanghai-based subsidiary Muyun Information Technology Investment to subscribe for 3,947,031 Class B Preferred shares of US-based virtual reality live streaming company NextVR, which will give CITIC a 2.27% stake. NextVR is valued at approximately USD 800 mln.
NextVR is an internationally known company that engages in live VR streaming broadcasts for sporting events, concerts, movies, and other events, including U.S. President Obama's presidential address and NBA basketball games. For this private placement, NextVR will issue 15,788,123 Series B Preferred shares, priced at USD 5.0671 per share, to raise USD 80 mln from select investors. Funds will be used for business and distribution channel expansion and to develop new VR live streaming technologies.
CITIC Guoan Information Industry's parent corporation, CITIC Guoan Group, is a wholly owned subsidiary of Chinese state-owned investment company CITIC Group Corporation. CITIC Guoan Group's operations include information industry businesses (including fixed-line television investments, telecommunications value-added services, satellite communications, network systems integration, software development, and advertising), travel, real estate, high technology, and resource development. Beijing Guoan Football Club is also a subsidiary of CITIC Guoan Group.
CITIC Guoan Group said that by investing in NextVR it will gain a direct connection to a leading business and technology team in the VR industry.
Keywords: Internet virtual reality broadcasting funding M&A NextVR overseas USA CITIC Guoan Information Industry 000839.SZ CITIC Guoan Group valuation
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