Hony, Poly Capital to open VR cinemas with China's Digital Domain
China-focused private equity firms Hony Capital and Poly Capital have partnered with Digital Domain Holdings, a Hong Kong-listed digital visual effects and virtual reality (VR) technology developer, to establish a joint venture that will open VR theaters in mainland China.
Financial terms were not disclosed. The JV, Digital Domain Space, will focus on VR technology R&D, content creation, and distribution, with a view to offering VR experiences to consumers under a new business model. For example, the VR theaters will be installed inside and outside the cinemas. While waiting for movies to start, consumers can take a virtual tour of the VR technology.
Digital Domain is known for producing a VR content and games such as Monkey King, Micro Giant, and Legend of the Naga Pearls. It will be responsible for incorporating advanced visual and audio equipment into the VR theaters.
“Nowadays, new technology and new business model have dramatically changed and improved our quality of life, bringing various innovative investment opportunities to the industry,” said Hill Wang, head of special opportunities investment at Hony. “The establishment of VR theaters will switch and expand the focus of the entire business from online platforms and businesses to offline consumer markets.”
Hony is currently investing its latest fund – Hony Capital Fund VIII – which closed at $2.7 billion last year. Last month, the GP acquired a stake in PCCW International OTT, a video-streaming subsidiary of Hong Kong telecom giant PCCW, alongside Foxconn Ventures and Temasek Holdings. Prior to that, the firm invested in Hollywood movie studio STX Entertainment and Shanghai-based boutique entertainment studio Linmon Pictures.
Poly Capital was founded in 2015 by Poly Real Estate, Poly Investment Holdings and China International Capital Corporation (CICC), with registered capital of $100 million. The firm manages real estate funds, PE funds and venture capital funds, with total assets of about RMB10 billion.
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