China's Enlight Media will invest USD30 million to acquire a 20% stake in Coveredge (Cayman) Inc.
Coveredge's major product is Echo, a sound entertainment community media platform targeting millennials. Echo was launched in September 2014 and the company boasted over 10 million registered users by September 2015. At the beginning of 2016, its user base already reached 13 million. The company provides the latest sound entertainment media content and a vibrant social platform. At the same time, it has established a user-generated content ecosystem and owns a large number of original music rights.
Enlight Media said that China's content industry payment is mainly driven by the new generation of young users. The investment in Coveredge will help the company increase its brand influence among the young users, which is an important channel for the company's content liquidity.
Enlight Media already started its related distribution among young users in 2014 and the company invested CNY25 million in Sparkly Key Animation Studio at that time. During the first three quarters of 2015, the company invested in many animation companies.