Tencent forms alliance with Thailand's VC-backed Ookbee

The joint venture, known as Ookbee U, aims to create a media streaming business by building a library of one million items of user-generated music, video and writing content within three years. Tencent's investment in the initiative has not been disclosed but was reported by TechCrunch to be at least $19 million.

The capital will be used to professionalize the content acquired, add new products and develop Ookbee's existing services. This effort will leverage Tencent's 2010 acquisition of Thai web portal, Sanook, and its ongoing video content production plans. The new business is expected to align with Joox, Tencent Thailand's music streaming app, which emphasizes user interaction, offers free content playback and generates revenue from advertising.

"This joint venture reinforces our commitment to Thailand and supports our Thailand strategy to grow our digital content platforms," Poshu Yeung, vice president of Tencent's international business group, said according to The South China Morning Post. "We are confident that our investment into Ookbee U will further strengthen our position to capture the promising potential in the dynamic local creative media market."

Ookbee was launched in 2010 with a focus on e-books, but has since expanded its range to include music, video, comics and other user-written content. It claims more than 5 million users across five Southeast Asian countries and distributes more than 500 magazine titles, including regional versions of Cosmopolitan and Men's Health.

The company received a $2 million investment from Intouch Venture Capital in 2012, giving the firm a 25% stake. It raised an additional $7 million in 2014 from TransCosmos, a US-based and Japan-founded strategic investor active in four Southeast Asian countries.

China's major internet companies have demonstrated increased interest in expanding their online content distribution market share in Asia's developing economies. This has included a focus on user-generated content for mobile displays and premium-produced content for household TV consumption.

Rapid internet penetration rates in Southeast Asia have attracted PE attention in this context as well, with Hera Capital recently investing My Social Book, a company that re-publishes online user-generated content in a print format.

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• Topics
• Southeast Asia
• Media
• Consumer
• Technology
• Thailand
• China
• Tencent
• TMT