Posted by: China Media LAB on Jul 20, 2012
TENCENT, China's largest Internet company by market value, has bought an undisclosed stake in one of the nation's leading business news provider, Caixin Media.
Caixin Media recently completed a new round of financing and introduced Tencent as one of its shareholders, with its major shareholder, Zhejiang Daily Press Group, maintaining a 40 percent stake, the financial news publisher said yesterday.
Caixin added that it will remain independent in terms of news reporting and Tencent will not be involved in its daily operations.
Caixin Media was established in 2009, with Zhejiang Press Group investing 40 million yuan (US$6.275 million) for the 40 percent stake, in addition to four other minor shareholders.
It is Tencent's latest move to beef up investment in media assets to expand its range of services for online users.
Previous media reports suggested that Tencent had taken 19.9 percent stake with 56.5 million yuan, but Ma Ling, director of brand and communications at Caixin Media, refused to comment on details about the investment.
Xie Wen, an IT commentator, said yesterday that he hoped the move would not just be a financial investment but would allow both sides to collaborate better on news service, especially on new media platforms.
Caixin Media, headed by veteran editor-in-chief Hu Shuli, publishes the Century Weekly magazine and the Caixin-China Economics & Finance monthly. It also runs news websites in both Chinese and English.
An official from Tencent's investment unit was not available for comment yesterday.
Last year, the Internet company invested 380 million yuan for a 20 percent stake in Shanghai-based Emoney Software Technology Co, a securities trading software developer.