News this week: Two of China’s leading Internet companies,
Tencent and Baidu, have announced the formation of a new joint venture (JV) with Wanda, a real estate and movie theatre chain
group. The JV is valued at about RMB 5 billion (US$814 million), in which Wanda
will hold a majority 70% stake, while Tencent and Baidu will each hold 15%.
The JV will aim to
gain more market share in China’s e-commerce market, which according to
iResearch, online retail sales alone in China is expected to grow 46% to RMB
2.8 trillion (US$447 billion) this year.
The partnership will
promote TenPay and Weixin Payment, Tencent’s online payment platforms. These
platforms will be the preferred payment method for transactions across all of
Wanda’s businesses. Meanwhile, Tencent will have access to movies, TV and
online content owned by Wanda.
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