Joint venture would aim to expand families' and kids' digital choices
SHANGHAI, Dec. 4, 2013 /PRNewswire/ -- The Walt Disney Company China and BesTV New Media Company Limited, the digital media subsidiary of the Shanghai Media Group (SMG), today announced they have signed definitive agreements for the formation of a new joint venture that will place viewers at the forefront of China's fast-changing digital landscape. The transaction is subject to certain closing conditions including clearance by applicable regulatory authorities.
The joint venture seeks to maximize the technical expertise, professional skills, experience and marketing strategies of both companies and to operate digital technology consulting businesses centering on BesTV and Disney-related services, products and content in mainland China. BesTV will own 51% of the joint venture and TWDC Shanghai Enterprises, LLC, a wholly owned indirect subsidiary of The Walt Disney Company, will own 49%.
"Technology and innovation are key pillars of Disney's strategic vision," said Mr. Stanley Cheung, Executive Vice President and Managing Director, The Walt Disney Company, Greater China. "The China digital landscape and industry is expanding and changing exponentially. This joint venture with BesTV and seeks to serve Chinese consumers who are increasingly connected to their viewing experiences across multiple platforms."
"BesTV has formed the largest new media platforms in China, including IPTV, smart phones, mobile TV and online streaming. Coupled with Disney's long standing commitment to digital innovation across multiple platforms, both companies share a common vision to provide an enhanced viewing experience for Chinese audiences and consumers, and explore new business models for digital distributors," said Mr. Tao Mingcheng, President of BesTV New Media Company Limited.
The joint venture will tap BesTV's local expertise, Disney's international experience and utilize complementary technologies. China's digital industry has grown significantly over the past five years with a distinct shift towards new platforms. "The opportunity to work with BesTV positions Disney at a deeper and exciting juncture in the rapid development of the Chinese digital industry," said Mr. Cheung.
