Tencent Tech, 6/27/17
Taicang-based Juyitang Network Technology, operator of video gamecasting platform Longzhu Games Broadcast, will invest RMB 1 bln in the gamecasting industry, and will look to gain a foothold in the gaming, sports, broader entertainment, and e-commerce industries, announced CEO Chen Qidong.
Longzhu will sign strategic partnerships with game developers Tencent (0700.HK) and Giant Network Group (002558.SZ), as well as sports event copyright holders, head anchors, and professional e-sports teams.
Of the RMB 1 bln investment, RMB 650 mln will be used to comb through 10,000 live streaming hosts and cultivate 10 to the level of stardom. The remaining RMB 350 mln will be used for the production of at least 10 premium interactive video programs.
Longzhu has formed strategic partnerships with Tencent and Giant Network Group for the promotion of e-sports contests of their respective games, such as first-person shooter CrossFire and casual game Battle of Balls.
Longzhu will partner with its ultimate parent SynaCast Media Technology (PPLive) on the copyrights of more than 2,000 film and television titles. Finally, Longzhu will explore e-commerce through interactive video shopping guides to test the revenue potential of e-commerce interactive video.
Longzhu was founded in February 2015, and previously won RMB 300 mln in Series A funding from SoftBank Global Ventures and Tencent, and USD 9-digit Series B funding led by online game portal operator U9 Game (600652.SH) and with participation by Tencent in November 2015.
Longzhu was previously operated by e-sports company Youshi Network Technology, which subsequently sold Longzhu to Synacast in November 2016. Longzhu Game Broadcast was valued at RMB 900 mln at that time.