China search giant Baidu launches $303m media fund
Baidu, China's leading internet search provider, has set up a RMB2 billion ($303 million) fund that will support the production of at least 30 movies over the next two years.
The vehicle, which will be managed by Baidu's subsidiary Baidu Nuomi Pictures, will invest in animated and live action films, as well as productions targeting Chinese youth, Yongming Xu, Baidu Nuomi's CEO, told the Shanghai International Film Festival.
Baidu Nuomi claims to have cooperated with other media partners on about 100 film projects, totaling over RMB30 billion. It is also an active investor in the broader media value chain, having acquired Chinese literature platform Zongheng and Japanese advertising firm Popln. There have been minority investments in China Film Stellar Theater Chain, Huace Media and Linekong Entertainment.
"In the future, the fund will make equity investments in several areas including intellectual property (IP), theaters, derivatives, content, advertising and technology," said Xu.
Baidu bought group-buying website Nuomi from social networking site Renren for $160 million in August 2013. Prior to that, the firm acquired China-based online video portal iQiyi.com from Providence Equity Partners for about $50 million.
As part of efforts to diversify their businesses, China's internet giants are looking to invest throughout the media value chain. Alibaba Group has launched Tmall Box Office, a subscription service along the lines of Netflix, and took full ownership of Youku-Tudou, an online video platform with deals to stream Hollywood movies. It has also created movie studio Ali Pictures which has production and distribution agreements with a string of local TV stations.
Tencent Holdings recently invested in a China joint venture formed by US-based talent and event management firm WME-IMG and Sequoia Capital alongside FountainVest Partners. In addition, it supported Sino-US media investment firm Tang Media Partners in the acquisition of film and TV studio IMG Global. Before that, it partnered with Beijing Weiying Times Technology to invest in YG Entertainment, a Korean record label and talent manager backed by L Capital Asia.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.