Suning and Hony will invest US$420 million in PPTV, of which Suning will put in US$250 million for a stake of 44% of PPTV.
The deal values PPTV at US$568 million.
Hony is likely to invest the remaining US$170 million. The valuation indicates that Hony will probably hold around 30% of PPTV.
The deal is the largest single strategic investment by Suning, according to a joint release. When the transaction is completed, Suning will become the largest shareholder of PPTV.
The three parties say that they will cooperate on consolidation, content development and synergies to stimulate growth of PPTV’s businesses.
"Hony’s investments in the cultural and media sector will strengthen PPTV’s competitiveness and ensure it’s long-term growth," says John Zhao, founder and CEO of Hony.
Established in 2005, PPTV is the largest online TV service in China with more than 340 million users. It offers sports, entertainment, news and other video content, according to its website.