SHANGHAI, Dec. 4, 2013 /PRNewswire/ -- The Walt Disney Company China and BesTV New Media Company Limited, the digital media subsidiary of the Shanghai Media Group (SMG), today announced they have signed definitive agreements for the formation of a new joint venture that will place viewers at the forefront of China's fast-changing digital landscape. The transaction is subject to certain closing conditions including clearance by applicable regulatory authorities.
The joint venture seeks to maximize the technical expertise, professional skills, experience and marketing strategies of both companies and to operate digital technology consulting businesses centering on BesTV and Disney-related services, products and content in mainland China. BesTV will own 51% of the joint venture and TWDC Shanghai Enterprises, LLC, a wholly owned indirect subsidiary of The Walt Disney Company, will own 49%.
"Technology and innovation are key pillars of Disney's strategic vision," said Mr. Stanley Cheung, Executive Vice President and Managing Director, The Walt Disney Company, Greater China. "The China digital landscape and industry is expanding and changing exponentially. This joint venture with BesTV and seeks to serve Chinese consumers who are increasingly connected to their viewing experiences across multiple platforms."
"BesTV has formed the largest new media platforms in China, including IPTV, smart phones, mobile TV and online streaming. Coupled with Disney's long standing commitment to digital innovation across multiple platforms, both companies share a common vision to provide an enhanced viewing experience for Chinese audiences and consumers, and explore new business models for digital distributors," said Mr. Tao Mingcheng, President of BesTV New Media Company Limited.
The joint venture will tap BesTV's local expertise, Disney's international experience and utilize complementary technologies. China's digital industry has grown significantly over the past five years with a distinct shift towards new platforms. "The opportunity to work with BesTV positions Disney at a deeper and exciting juncture in the rapid development of the Chinese digital industry," said Mr. Cheung.
About The Walt Disney Company in China
The Walt Disney Company (NYSE: DIS), together with its subsidiaries and affiliates, is a diversified international family entertainment enterprise with five business segments. Disney's first animation screened in China in the 1930s and today our long association continues with offices in Beijing, Shanghai and Guangzhou with over 3000 employees. The company is focused on creating high-quality entertainment experiences and effectively building local and Disney franchises in China. Disney currently has several established businesses in the country, including studio entertainment, parks and resorts, consumer products, media networks, interactive media, and its English language program, Disney English, which launched in 2008. In September 2005, Disney opened its doors to its first theme park in China, Hong Kong Disneyland and in 2011 announced ground breaking for the Shanghai Disneyland Resort, a joint venture with Shanghai Shendi Group. In Oct 2013 Disney also announced plans to build its largest Disney store in the world in Shanghai, China. Disney is a Dow 30 company and had annual revenues of $45 billion in its Fiscal Year 2013. For more information about The Walt Disney Company please visit: http://corporate.disney.go.com/
BesTV New Media Co Ltd (SHA:600637) is an A-share listed new media company controlled by Shanghai Broadcasting TV Station and Shanghai Media Group (SMG). BesTV New Media owns 100 percent equity of BesTV NetTV Technology Development Co., Ltd, Shanghai Media & Entertainment Technology Group and Shanghai Film, Radio & TV Production Co., Ltd. BesTV also controls Funshion Network, and has established a joint venture with Microsoft, Lenovo and ZTE Corporation. All of these have led BesTV to build the largest new media industry cluster in China. The company covers more than 20 provinces/cities in Mainland China and South East Asia with a new media business portfolio including IPTV, internet TV, smart TV, OTT and mobile TV, and established a presence in Asia-Pacific and Africa regions with technologies, equipment and film & television production channel. For more information about BestTV, please visit http://www.bestv.com.cn/
SOURCE The Walt Disney Company