Update: Leshi Internet, Guoan Soccer Club Halt Cooperation Deal
Tencent Tech, 10/26/16
The Beijing Guoan soccer club has announced an end to its partnership with Chinese online video and internet TV content provider Leshi Internet Information and Technology (300104.SZ). The original sponsorship deal announced earlier this year would have given Leshi Internet naming rights (Beijing Guoan Leshi Team) and the company would acquire a 50% stake in Beijing Guoan for an RMB 2 bln investment over two years. However, apart from paying RMB 50 mln for the naming rights, the progress of the partnership has slowed to a stop.
After receiving RMB 50 mln, Leshi failed to conform to the terms of the equity buy in, said Beijing Guoan honorary chairman Luo Ning. A spokesperson for Leshi said that the partnership has dissolved because the two parties could not reach consensus on a key clause, and vigorously denied rumors that Leshi could not afford to pay RMB 2 bln.
Editor's Note: For more information on this topic, please see "LeTV, Guoan Soccer Club Sign RMB 100 Mln Sponsorship Deal," MD 1/19/16 issue.
Keywords: sports Internet online video 300104.SZ Leshi Internet football M&A marketing Beijing Guoan Luo Ning
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