Suning Commerce announced to Chinese local media that the group cooperated with Legend Holdings' Hony Capital to jointly invest USD420 million in PPTV, a Chinese Internet video website.
After this strategic investment, PPTV will maintain its independent development.
According to electronics retailer Suning, the company will invest USD250 million in PPTV, accounting for 59.52% of the total invested capital. With this investment, Suning will gain a 44% stake in PPTV, making it the largest shareholder in the video website. This is reportedly the largest strategic investment ever by Suning. At the same time, Hony Capital will invest USD170 million in PPTV.
Tao Chuang, chief executive officer of PPTV, said that at present, the pure Internet online economy is transforming. Being in line with this trend, PPTV also launched its smart family video strategy, aiming to establish a family-focused smart industrial chain of technology services.
Commenting on PPTV's strategy after this investment, Tao said they will stick to their existing strategy. The company plans to create a model that enhances user loyalty while also integrating the company's internal mechanisms.