China’s Growing Soft Power In Hollywood, LeEco’s Woes Lead To Slowdown
In another sign of China’s growing soft power in the U.S., Chinese mogul Wang Jianlin, who’s been scooping up US entertainment companies for Dalian Wanda Group, just bought the all-American Dick Clark Productions for an eye-popping $1 billion. China’s richest man now owns the Golden Globes, American Music Awards and Billboard Music Awards – as well as AMC Theaters.
The China to Hollywood story is similar to what’s unfolding in Silicon Valley, where Chinese conglomerates have been paying large sums to buy into innovative Silicon Valley tech companies.
Mark Rafalowski, EVP-International Distribution at Dick Clark Productions, was recently on a panel at Silicon Dragon about US-China entertainment deals. You can see the video clip here, Silicon Dragon LA 2016. There was almost a hint that a deal could be coming!
Read Forbes post: China’s Soft Power.
LeEco chairman Jia Yueting is admitting that the conglomerate’s quick expansion plans and new ventures have led to a cash crunch and a slowdown in its pace of growth. This comes just weeks after a lavish media event in San Francisco to launch smartphones, TV sets and connected content in the U.S. and four months after its $2 billion acquisition of Los Angeles-based TV maker Vizio.
In a letter to employees, Jia wrote that LeEco would focus on existing businesses instead of new ones. An electric car plant in Nevada could be in question given the financial issues. Read Troubled LeEco in Bloomberg Technology.
One of the earlier venture firms investing in China, Qiming
Venture Partners has reached a final closing for its 4th RMB fund, drawing the equivalent of $222 million. The Chinese venture firm focuses on technology investments in startups and emerging companies, and also has a strong emphasis on healthcare deals. Earlier this year, Qiming closed its fifth US$ fund, at $650 million. Among Qiming’s investments are Chinese smartphone maker plus – Xiaomi.
Alibaba, going from strength to strength, recorded a strong third quarter, with revenues up 55% year over year to $5.1 billion. The company’s core commerce business grew 41% in the same time period to $4.3 billion. Cloud computing and digital media and entertainment segments recorded triple digit increases. Mobile commerce is driving a lot of gains, with active users up 30% year over year.
INDIA
Chennai-based SaaS startup Freshdesk landed a $55 Million, 6th financing round led by Sequoia Capital India along with Accel India.
Chennai-based software as a service startup Zarget has raised $6 million in Series A funding led by Sequoia Capital India with Matrix Partners and Accel India.
