Alibaba, Tencent in $313m round for CMC’s smart TV start-up
Whaley Technology, a smart TV maker founded by Chinese media mogul Ruigang Li, has raised RMB2 billion ($313 million) in funding from Li’s media-focused fund CMC Capital Partners, Alibaba Group and Tencent Holdings.
Whaley announced the investment at the same Shanghai press event where it unveiled its first 55-inch 4K resolution smart TV that is sold for RMB3,799 ($594) each. China National Radio also invested in the start-up, according to local media reports linked to Whaley's official website.
Launched in April by Li, chairman of CMC, and Huaiyu Li, managing director at CMC and formerly CEO of Shanghai Media Group's (SMG) IPTV business, Whaley Technology specializes in web-enabled smart TVs, which are sold directly to consumers via Alibaba's B2C e-commerce platform Tmall. Whaley plans to broadcast exclusive TV programs including Hollywood movies and sports events. Beyond providing capital, Alibaba and Tencent will also help Whaley develop content.
The e-commerce giant operates its own film and entertainment unit, Alibaba Pictures, which was created last year when Alibaba bought 60% of Hong Kong-listed ChinaVision - in which Tecent and VC firm Sequoia Capital were investors - for HK$6.24 billion and renamed it. Two months ago, Alibaba Pictures announced that it intended to raise about HK$12.1 billion ($1.56 billion) through a share placement to help finance potential acquisitions in the media industry.
In addition, Alibaba and Yufeng Capital also own a combined 18.5% stake in online video streaming site Youku Tudou.
CMC was set up in 2010 and claims to be China's first media and entertainment-focused private equity fund approved by the National Development and Reform Commission (NDRC). Sponsors include China Development Bank, Wenhui-Xinmin United Press Group and Shanghai Media Group. Li is the former chairman of Shanghai Broadcasting and president of SMG.
The media-focused fund's previous investments include the purchase of New Corporation's China portfolio, separate joint ventures with Dreamworks Animation and Hong Kong broadcaster TVB, and the acquisition of a stake in OCJ, a Chinese TV shopping business. Last year, it partnered with FountainVest to acquire a 20% stake in movie theater operator IMAX's China business for $80 million.
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