×
You will be redirected back to your article in seconds

Tencent Unit Buys New Classics Media for $2.25 Billion

China Literature, the publishing subsidiary of Chinese e-commerce giant Tencent, has bought control of leading Chinese film and TV producer New Classics Media for up to $2.25 billion (RMB15.45 billion). The price includes an earnings component, reflecting profits to 2020.

New Classics Media has produced films “Never Say Die” and “Legend of the Demon Cat” and TV series “The First Half of My Life” and “Tiger Mom.”

The news was announced in a regulatory filing to the Hong Kong stock market, where China Literature is listed.

Tencent says the acquisition of such a major TV production house will help it unlock the potential of its vast literary library. It notes that a third of the top 50 movies and a quarter of the top TV series in China are literary adaptations. The figure rises to more than 50% for web series.

Integrating New Classics Media will allow Tencent “to adapt more high-quality literary content into popular television series, web series and films leveraging [New Classics Media’s] proven track record of script development and production across multiple literary genres,” China Literature said in the filing. “The prevalence of mobile Internet has propelled large Internet platforms to seek additional content offerings in order to capture a greater proportion of the fragmented user time of Chinese Internet users. The video portal has become the premier destination for audio-visual entertainment to Chinese consumers.”

Tencent, which stretches from games to social media, also operates Tencent Video, one of China’s top three generalist video-streaming platforms.

Earlier this year Tencent bought a 27% stake in New Classics Media from Enlight Media. The new transaction gives China Literature outright control. New Classics had until earlier this year itself considered an IPO and share listing.

The filing shows New Classics Media made net profits of RMB161 million in 2016, and more than doubled that to RMB376 million in 2017.

Both New Classics Media and Tencent Video were last week among the nine major TV producers to sign an industry agreement capping the salaries of stars in its TV series.

More Biz

  • Cineworld

    U.K.'s Cineworld Poised to Buy Canada's Cineplex in $2.1 Billion Deal

    U.K.-based Cineworld is to acquire Cineplex, Canada’s leading cinema chain, in a deal that values the Toronto-listed company at $2.1 billion (C$2.8 billion) and puts Cineworld in position to become North America’s biggest exhibitor. Cineworld said Monday that it had secured unanimous approval from its board of directors for the acquisition, and that its leading [...]

  • Harvey Weinstein arrives in court, in

    Harvey Weinstein Gives Bizarre Interview From Hospital Ahead of Rape Trial

    Harvey Weinstein has given an interview weeks ahead of his rape trial in a desperate effort to convince onlookers that the apparent medical condition that caused him to undergo back surgery and use a walker are authentic and insist that he has done more for women professionally than he is being given credit for. In [...]

  • US Capitol

    The Sneaky Long Game of ALI’s Restatement of Copyright (Guest Column)

    Last week, Senator Thom Tillis and four other members of Congress sent a letter to an organization you may never have heard of, the American Law Institute (ALI).  The letter questions the ALI’s ongoing project to publish a competing version of the Copyright Act – or, as the ALI calls it, a “Restatement” of copyright [...]

  • Tom Petty’s Daughters, Widow Settle Legal

    Tom Petty’s Daughters, Widow Settle Legal Battle Over Estate

    Tom Petty’s widow and daughters from a previous marriage have settled their bitter legal battle, according to a report in Rolling Stone. Earlier this year, Adria Petty and Annakim Violette, the late singer’s daughters with his former wife Jane, sued his second wife, Dana York, for $5 million, alleging that she had deprived them of [...]

  • Tropical rainforest on the banks of

    Warner Music Aims to Plant 100,000 Trees in the Amazon as Holiday Gift to Staff

    In a move that inspired and environmentally conscious companies will hopefully emulate, as a holiday gift to its employees, Warner Music Group is partnering with the One Tree Planted organization to plant trees in the fire-ravaged Amazon forest. The company is planting 10 trees in the Amazon for each employee — a total of 48,210 [...]

  • Republic Records Names Chris Blackwell Senior

    Republic Records Names Chris Blackwell Senior VP of Creative Content

    Republic Records has named Chris Blackwell senior vice president of creative content & development, it was announced today by co-founders Monte and Avery Lipman and general manager Jim Roppo. According to the announcement, Blackwell will lead creative development for film, television and premium platform projects set to feature and showcase Republic Records artists. His responsibilities include establishing partnerships to create, develop, [...]

  • China Spying Technology Tik Tok Placeholder

    TikTok Gains Global Momentum -- but Also Raises Sticky Privacy Questions

    Bay Area rapper Saweetie didn’t intend for “My Type” to come out as a single. But when a clip of the bouncy anthem about desirable (and slightly vulgar) attributes in a partner started to take off on TikTok as part of a social media challenge, it became clear the song would be her defining hit. The [...]

More From Our Brands

Access exclusive content