China-based smart television manufacturer Coocaa received a RMB300m ($44m) strategic investment from internet company Tencent yesterday, in return for a stake of just over 7.7%, according to a stock exchange filing
The transaction valued Coocaa, established as a joint venture of consumer electronics producer Skyworth Digital and Netac Technology, at RMB4bn. Tencent participated through an unnamed affiliate.
Founded in 2006, Coocaa produces smart consumer electronics devices such as smart televisions and Bluetooth headphones. The company is also working on a TV aimed at children that automatically reduces blue light in order to protect a user’s eyesight.
Coocaa is reportedly also planning to establish a RMB100m virtual reality investment program. Tencent’s investment will strengthen the content and distribution partnership between the two companies, and Tencent will reportedly integrate its content with Coocaa’s hardware products.
Coocaa previously received $22.5m in funding from video streaming platform iQiyi in September 2016, and the filing indicates iQiyi’s stake is now sized at 4.6%.
The company’s other shareholders include Chuangwei-RGB Electronics, a subsidiary of Skyworth that retains a majority stake of approximately 71.9% following the latest investment, and Kujin Investment as well as Tangdi Investment.