(Yicai Global) Dec. 13 -- Shanghai Media Group and Shanghai Jiushi Group Co., two state-owned enterprises, have entered a strategic cooperation to develop the sports industry.

The plan will see Jiushi Group use its sports and investment divisions to buy a 25-percent stake in an SMG unit, Great Sports Media Co., and become its second-largest shareholder. After the deal, the target firm's registered capital will grow to CNY66.7 million (USD10 million).

Great Sports and Juss Event, Jiushi's sports division, have long held cooperative ties and broadcast reports of such events as the Formula 1 World Championship and the ATP World Tour Masters 1000.

Juss Event is the largest international events management company in China. It operates a number of renowned events, including the Grand Prix and the Shanghai Masters for both tennis and snooker.

Great Sports is a top-ranking sports media group in China. It owns three major live broadcasting platforms on the radio, television and web.