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Rivals collaborate: Tencent and Alibaba both invest in film/TV outfit Huayi Brothers

Tencent gains IP for game development
Rivals collaborate: Tencent and Alibaba both invest in film/TV outfit Huayi Brothers
Date Type Companies Involved Size
Nov 19, 2014 investment Alibaba Huayi Brothers Tencent $450m

Demonstrating the complex competitive-yet-sometimes-collaborative business relationships between its tier 1 companies, arch rivals Tencent and Alibaba have both invested in media outfit Huayi Brothers.

In terms of mobile gaming, it's best known for its equity stakes in Chinese developers Yinhan and Ourpalm, but the majority of Huayi's business revolves around film and TV media.

Cash in

The deal will see Tencent and Alibaba paying $210 million and $250 million respectively to each gain 8 percent equity in Huayi Brothers.

Alibaba will integrate its Yule Bao crowdsourcing media platform with Huayi's film and TV business and the companies will collaborate on five additional film projects, while Tencent gains the rights develop games based on Huayi Brothers' IP.

As with Alibaba, Tencent will collaborate over five films and Huayi gains the rights to make films based on Tencent game IP.

[source: Maybridge]