Huace Raises RMB 2 Bln for Film & TV Business Development
Huace, 10/09/14
Zhejiang-based film and TV production and distribution company Huace Film & TV (300133.SZ) has revealed plans to raise RMB 2 bln through the additional sale of up to 72.7 mln shares of stock at a price RMB 27.51 per share. The company will use the new funds to provide operating capital for its film and TV business. The list of targeted investors has not been made public, but does not, as previously rumored, include online video website iQiyi, a subsidiary of Chinese internet firm Baidu (Nasdaq: BIDU).
Of the capital raised, Huace plans to spend RMB 1.3 bln to upgrade its content production businesses, RMB 500 mln to produce 13 films and sequels, and the remaining funds to produce TV variety programs, including 8 large-scale variety shows.
According to an industry source, Huace and Baidu have reached an agreement for a comprehensive cooperation covering iQiyi, Baidu Games, Baidu Music, Baidu Literature, Baidu Post Bar, Baidu Search, and other Baidu products and services.
Editor's Note: For more background on this topic, please see "iQiyi, Huace to Establish Film and TV Content JV" MD 8/27/14 issue.
Keywords: financing television Baidu BIDU Huace 300133.SZ iQiyi film production TV content production
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