New Culture Media to Decrease Investment in Baidu Video Spin-off
New Culture Media, 11/03/16
Shanghai-based film and TV content production company New Culture Media Group (300336.SZ) has announced that it will reduce its originally planned investment in Xiaodu Huyu Technology, the firm spun off from Chinese internet company Baidu (Nasdaq: BIDU) to operate online video platform Baidu Video. New Culture Media Group had planned to invest RMB 410 mln in Xiaodu Huyu, but will now drop that sum to RMB 103 mln.
Under the original investment plan, New Culture Media would have acquired a 21.28% stake in Xiaodu Huyu and the rights to name one board member. With the smaller investment, New Culture Media loses its board seat and will only hold a 6.83% stake.
New Culture Media says that it was able to conduct friendly negotiations with Baidu and Xiaodu Huyu to terminate the original resolution.
New Culture Media will continue to follow its strategy of steadily increasing content distribution channels.
Editor's Note: For more background on this topic, please see "Baidu Video to Be Spun Off, Secures RMB 1 Bln Funding" MD 04/20/16 issue.
Keywords: Xiaodu Huyu Internet online video Baidu spin-off BIDU New Culture Media 300336.SZ M&A
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