Sequoia-led consortium forms China JV with WME-IMG
A consortium led by Sequoia Capital has created a joint venture (JV) with US-based talent and event management firm WME-IMG to develop sports and entertainment businesses in China.
Tencent Holdings, private equity firm FountainVest Partners and its portfolio company Focus Media, China's leading outdoor advertising business, also participated in the investment. Financial terms were not disclosed.
WME-IMG was created after US talent agency WME bought sports and fashion events operator IMG in 2014. The combined company, run by Ariel Emanuel and Patrick Whitesell, represents artists across several entertainment verticals, including motion picture, television, music and digital.
The firm already has a presence in China, representing athletes including Li Na and managing events such as World Golf Championship HSBC Champions and the Shenzhen Open. It also negotiates media rights for sports entities such as the Chinese Super League, and maintains a JV with CCTV to develop and promote sporting events.
"With the incredible growth they have been experiencing domestically, we saw this as a perfect opportunity to help them replicate that success in China within both sports and entertainment. This partnership is another example that Sequoia Capital China plays an instrumental role in helping leading internet and media companies grow and expand in China," Neil Shen, founding and managing partner at Sequoia Capital China, said in a statement.
The JV comes after WME-IMG achieved raisings of $250 million and $55 million from Japan's SoftBank Group and Fidelity Management & Research, respectively. The company made a number of acquisitions globally last year, including Global eSports Management and the firm that runs the Miss Universe.
Driven by rising disposable incomes and rapid adoption of handheld devices, Chinese strategic and financial investors are looking to invest in the media value chain from origination to distribution. Meanwhile, Hollywood players are looking for local parties to assist with distribution and monetization of their products in China.
Last week, Sino-US media investment firm Tang Media Partners, another Tencent-backed venture, bought a majority stake in Hollywood film and TV studio IMG Global. Earlier this year, Dalian Wanda paid $3.5 billion for a controlling stake in Legendary Entertainment.
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