China-based smart television startup Whaley Technology has raised RMB 2bn ($313m) from investors including e-commerce group Alibaba and diversified internet company Tencent, Xinhua reported today.
Whaley was formed by media-focused venture capital and private equity firm China Media Capital (CMC) in April this year. It revealed yesterday that its first product will be a 55-inch, 4K resolution smart TV costing RMB 3,799.
Another of the company’s shareholders is state-owned broadcaster China National Radio, which is also the holder an internet TV licence. Whaley has not revealed the amount invested by each partner, but CMC led the funding according to the Wall Street Journal.
The company’s plan is to control the entire value chain, from manufacturing to distribution, where Alibaba’s Tmall subsidiary comes into play, to content. Whaley will produce hardware and source its own content, at least some of which will be supplied by Alibaba and Tencent through their partners.
Alibaba is an investor in video streaming site Youku Tudou, which revealed last week it plans to generate more original content, and holds a majority stake in film production studio ChinaVision.
Tencent does not have the same breadth of domestic links but has forged distribution partnerships with international entertainment producers including Warner Music, HBO, the NBA and Sony Music.
Whaley will initially show content owned by CMC and supplied by the likes of Time Warner, Oriental DreamWorks, STAR China, China Sports Media and Hong Kong broadcaster TVB. Li Ruigang, chairman of CMC, was previously president of state-owned broadcaster Shanghai Media Group before stepping down at the start of 2015.
Tencent and Alibaba’s collaboration on the venture is a hint that the firms, widely seen as competing with each other for pre-eminence in China’s internet sector, may be willing to share out the spoils.
The companies are also both investors in Didi Kuaidi, the country’s market leader in the online ride hailing sector.