Chinese online movie ticketing services platform Maoyan plans to invest 390 million Hong Kong dollars ($50 million) to acquire a stake in Hong Kongese media company Huanxi Media.
In January, Maoyan landed around $250 million when it launched on the Hong Kong Stock Exchange. The company is now spending a fifth of the proceeds on the stake in Huanxi.
Huanxi will issue new shares to Maoyan at a nominal $0.12 per share, valuing it at $667 million, giving Maoyan 7.5 percent of the enlarged company.
The transaction gives Maoyan the right to co-invest in Huanxi film and television projects and to be a promotional and distribution partner on Huanxi titles. In return, Huanxi gets to use Maoyan’s platform as an additional shop window for its video on demand activities.