(Yicai Global) July 18 -- Baofeng Group Co., an online audio and video entertainment service, is to invest CNY10 million (USD 1.5 million) through its subsidiaries and senior executives to set up video content provider Baofeng Pictures (Beijing) Co.
Baofeng Group will invest CNY3.5 million, its subsidiary investment company Baofeng Xinhui (Tianjin) Enterprise Management Partnership Co. will invest CNY3 million, Mr. Lv Ning, deputy general manager of Baofeng Group, will invest CNY2.5 million and outside investor Ms. Wang Yuan will invest CNY1 million.
The aim is for Baofeng Pictures to acquire films and TV dramas, interactive games, variety shows, literature, animation, and other high quality IP resources.
Many Chinese Internet companies have entered the entertainment market in the last couple of years. E-commerce giant Alibaba Group Holding Ltd. acquired China Vision Media Group Ltd. in 2014 for HKD6.24 billion (USD804.7 million), and subsequently renamed it Alibaba Pictures. Internet giant Tencent Holdings Ltd. spent CNY4 billion (USD600 million) to acquire the online literature site, Cloudary Corp. last year. Similarly, Internet video giant Youku Tudou Inc. created Heyi Film Inc. in 2014 as China's first 'online and offline film company.'