(Yicai Global) Sept. 22 -- Chinese internet-based cinema ticketing platforms Maoyan Culture Media Co. (Maoyan Movie) and Beijing Weiying Technology Co. have agreed a strategic cooperation agreement to set up a new company, Maoyan Weiying, by merging much of their businesses into a new online pan-entertainment platform, the companies said in a press briefing on Sept. 21.
Maoyan Movie will operate all of its current businesses, including ticketing and film investments, through the new firm, while Weiying will increase efforts to develop movie and TV production and run its sports business through the platform.
Weiying's film ticketing business will also be positioned within the new company.
Weiying will obtain a 27.59 percent stake in Maoyan through the agreement, which will see key shareholders Enlight Media Co. [SHE:300251] and Shanghai Enlight Investment Holdings Co. reduce their holdings from 77.13 percent to 66.85 percent.
Linzhi Tencent Technology Co., owned by internet giant Tencent Holdings Ltd.'s [HKG:0700] industrial investment fund, will obtain a 6.56-percent stake in Maoyan, while Meituan-Dianping's stake will shrink to 8.46 percent.
Tencent did not make any financial investment as part of the agreement. The firm received its stake by integrating Maoyan Movie into the search function of its vastly popular instant messaging and lifestyle app WeChat on Sept. 11, which will significantly boost Maoyan's web traffic.
Wang Changtian, an Enlight Media executive, will serve as the new company's chairman, while Lin Ning, Weiying chairman, and Zheng Zhihao, Maoyan's chief executive, will serve as vice chair and CEO, respectively.
Maoyan Weiying's assessed value is CNY13.66 billion (USD2.1 billion) following the merger, down significantly from Maoyan's independent worth last year. Maoyan was valued at around USD2 billion in 2016 after a successful C+ financing round when it was dominating the market.