E-commerce firm Alibaba and internet group Tencent have combined to invest RMB360m ($52.6m) in China-based television content producer Shanghai Canxing Cultural and Broadcast Company, China Money Network reported on Tuesday.
Alibaba provided $29.2m and Tencent invested the rest through its Tibet Qiming Music subsidiary, according to a regulatory filing cited by China Money Network which also stated that the round valued the company at approximately $2.49bn.
Canxing produces TV shows including talent contests Voice of China and So You Think You Can Dance. It signed a joint production deal with Syco, the entertainment company founded by music producer and TV personality Simon Cowell, in late 2016.
The company was founded in 2010 by TV broadcaster Star Group, which took a 47% stake, and media holding company Chinese Culture Group, which owned a 53% share. It had disclosed plans to go public this year.
Hydropower producer Zhefu Holding Group paid approximately $46m for a 6.1% stake in Canxing in March 2016 before Canxing closed a series A round featuring undisclosed investors in December 2017 that valued it at $3.2bn, according to media outlet Yicai Global.
Generally viewed as fierce rivals, Tencent and Alibaba rarely invest together but seem to be showing interest in partnering on large media deals.
Both companies were part of a consortium that provided $1.5bn for media and entertainment-focused investment fund China Media Capital last month and are also in talks to jointly acquire a share in marketing and public relations group WPP’s Chinese subsidiary.