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Rumor: Leshi Internet in Discussions with New Investors

Ccstock.cn, 8/21/17

Senior executives at Chinese online video content and smart device firm Leshi Internet Information and Technology (300104.SZ) have reportedly been discussing partnership terms with representatives of an unspecified, leading Chinese Internet company, including the possibility of adding the company as a strategic investor, according to a source at Leshi Internet interviewed by online media outlet Ccstock.cn. Online rumors have recently speculated that Sun Hongbin, chairman at Leshi Internet, has been seeking to add a strategic investor, and that Chinese internet firms Tencent (0700.HK), Alibaba Group (NYSE: BABA), and JD.com (Nasdaq: JD) are possible candidates.

Recent rumors have said that Tencent, JD.com, and Alibaba are each interested in Leshi Internet's assets within their domains, and that in addition to these Internet companies, Chinese entertainment conglomerate Dalian Wanda Group and consumer electronics manufacturer Lenovo (0992.HK) are potential investors. According to a source familiar with the matter, following the departure of Jia Yueting, JD.com CEO Richard Liu and Sun Hongbin have been discussing Leshi Internet's future. According to the source, JD.com has expressed great interest in Leshi's hardware business, Tencent is interested in Leshi's film business Leshi Pictures, and Alibaba is interested in Leshi's [Le.com] assets.

Representatives for Tencent, JD.com, and Alibaba declined to comment on the matter when reporters sought to verify this information.

A source at Leshi Internet said that Sun Hongbin does not intend to sell Leshi Internet. Sun reportedly remains optimistic regarding Leshi's big screen, film, and TV businesses and expects that the company will be able to recalibrate independently. However, the source did not rule out the possibility that a new strategic investor may be added.

Keywords: M&A Richard Liu film consumer electronics hardware Lenovo Internet online video Tencent 0700.HK 0992.HK Jia Yueting 300104.SZ Alibaba Group Leshi Internet Wanda Group JD.com JD BABA Sun Hongbin

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