(Yicai Global) Dec.16 -- Hunan TV & Broadcast Intermediary Co. [SHE:000917], a well-known Chinese radio and television network operator, will acquire a 17 percent stake in an online game developer based in the city of Hangzhou in China's southeastern Zhejiang province by taking part in the capital raising program of the latter and purchasing its equity. It will acquire all the equity of the online game developer based on the realization of the target company's performance commitments at the appropriate time.
The company said last night that it will invest CNY283 million (USD41 million) in Hangzhou Miaoju Network Technology Co. by taking part in Miaoju Network's capital raising program and buying its equity. Specifically, it will invest an additional CNY31 million in Miaoju Network and acquire Miaoju Network's equity worth CNY252 million. The company will hold a 17 percent stake upon consummation of the deal.
The target company mainly engages in the distribution and operation of online games, and owns two popular domestic online gaming platforms -- Ledu.com and Xdwan.com.
A convergence effect will be achieved by combining the target company's business system with the company's advertising agency and mobile new media subsidiaries, as well as its cable network business, to help promote construction of the company's pan-entertainment ecosystem.