Chinese investment abroad continues as Everbright and Baofeng invests in Italian sports rights media group.
Two of China’s biggest investors have become majority shareholders of Italian company MP & Silva. The Italy-based sports rights company owns, manages, and distributes sports content around the world. Football is currently the company’s most notable sport, however, MP & Silva’s portfolio also features tennis, Formula One and American football.
Chinese investors Everbright and Baofeng are the two companies taking over majority shares in the Italian company after forming the Shanghai Jin Xin investment fund. The investment fund has a 65% share of MP & Silva, and despite official figures being kept under wraps, it is thought that the value of the sports rights company is near $1 billion.
While the Chinese investors hold the majority stake in the company, MP & Silva’s existing stakeholders will remain in control of 35% of the firm.
Who are Everbright and Baofeng?
A large and diversified financial conglomerate, Everbright works mostly in the environment sectors. Meanwhile, Baofeng is a rapidly growing company, focusing on digital entertainment. The firm is well-known for its work in virtual reality and is one of the biggest online video-playing platforms in all of China. The companies investment abroad shows their willingness to, not only diversify further, but to test the waters of the international markets.
Why buy into MP & Silva?
Reports indicate that Baofeng is looking to continue its development of digital entertainment. Those plans have seen the company set its sights on a sports channel and series of sports mobile and computer apps. The acquisition of MP & Silva would facilitate the company’s drive to deliver worthwhile sports media.
Italy’s Serie A football league has grown tremendously in China in recent times, with MP & Silva having the rights to broadcast it on the group’s channel in China, it would see the Italian league grow further in the country.
In addition to allowing Baofeng to increase its offerings to customers, Chinese investment experts believe the deal will help MP & Silva expand in the Chinese market. MP & Silva obtained $600 million in revenues last year, and the company is forecasted to grow significantly.
What they said
Baofeng, Everbright and MP & Silva released a joint statement in regards to the investment. All three expressed their happiness toward working together in the future as they grow their joint-business venture.
“This partnership will provide MP & Silva with additional financial resources to accelerate the growth of the business and build on over a decade of success,” the three companies stated.
“The new partners will bring expertise and experience that will help facilitate the development of the group internationally, particularly in the rapidly growing and increasingly important Chinese market.
“Additionally, MP & Silva will have access to new and exciting technology, such as virtual reality and Internet-based services that are transforming the delivery of sports events and content.”
Chinese investment abroad has been at an all-time high. Companies from China have been investing heavily in areas as diverse as football and sports, US real estate and German computer products. Notably, Chinese investors have bought stakes in both Manchester City and Atletico Madrid football clubs, as Chinese investment continues to expand into different countries and industries.