China's LeTV raises $153m for cloud-computing unit

Following the transaction, LeTV's equity interest in the unit will be diluted from 60% to 50%, while the Chongqing fund will own a 16.67% stake, according to a filing.

LeTV has identified cloud-computing as a key component of its technology ecosystem - known as eco-as-a-service (EaaS) - which covers internet video, smart TVs, smart phones and new-energy cars.

ChiNext-listed LeTV said the new investment will enhance its cloud-computing business' market position in western China. The proceeds will be used for product development, service optimization, talent recruitment, marketing and overseas expansion. LeTV Cloud wants to have billions of users globally and about 100,000 enterprise users in the broadcasting, education and sports industries.

The company started out as an online video portal - LeTV.com - in 2004 and went public in 2010. The following year it set up a movie production house, called Le Vision Pictures, producing local movies as well as financing and distributing Hollywood imports into China.

LeTV has been aggressively expanding into other verticals such as e-commerce, smart TVs and content production. Last May, LeTV.com spun off its sports channel - LeTV Sports - and raised RMB800 million ($129 million) from Yunfeng Capital and Dalian Wanda Group. Then in October it acquired acquired 70% of Yongche.com, facilitating an exit for existing shareholders in the car rental and taxi-booking app.

Chongqing Industrial Investment Fund was launched in 2015 with a corpus of RMB80 billion. LPs include Chongqing Finance Bureau and Chongqing Yufu Assets Management Group.

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• Topics
• Greater China
• Venture
• Expansion
• Technology
• China
• Venture
• TMT
• Growth capital