Hero Interactive's Sports Subsidiary Secures RMB 640 Mln in Funding
Focus Media, 7/29/16
Chinese sports and e-sports event organizer Hero Sports Management, a subsidiary of Hero Interactive Technology (430127.NEEQ), has completed a RMB 640 mln funding round from Chinese digital media group Focus Media Holding (002027.SZ), DMG Cultural Industrial Fund and Yongtong Fund, among others.
Focus Media Holding, in a public filing, said its wholly owned subsidiary Gongqing Focus Chuangxiang Information Technology would inject RMB 300 mln into Hero Sports, of which RMB 1 mln will be used to increase its registered capital and the remaining RMB 299 mln will be added to Hero Sports' capital reserves. Focus Chuangxiang will hold an 8.24% stake in Hero Sports after the transaction is complete.
According to Chinese online media outlet Tech Web, DMG Cultural Industrial Fund, Yongtong Fund, and other investors will also participate in the round, investing a total of RMB 340 mln in Hero Sports. Per Focus Media's filing, the other investors in the round will take a combined 9.34% post-money stake in Hero Sports.
Hero Sports Management, established in May 2016, mainly organizes and manages sports events including e-gaming competitions, sports programs, and sporting event live broadcasting. The company's services currently have more than 400 mln registered users including more than 50 mln daily active visitors and approximately 80 mln monthly active visitors. Beijing Hero Interactive Technology controlled a 43.57% stake in Hero Sports Management prior to this transaction and will hold a 35.91% stake after the investment.
Through this investment, Focus Chuangxiang will leverage Hero Sports' user base to promote sports games and e-sports within China. Hero Sports Management can also help Focus Chuangxiang to reach younger gamers born in the 1990s and 2000s.
Keywords: M&A VC DMG Cultural Industrial Fund Yongtong Fund Focus Media Internet funding sports 002027.SZ Hero Interactive 430127.NEEQ e-sports Hero Sports online gaming mobile gaming
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