Tencent Plans To Take 20% Of Korean Celebrity Agency KeyEast

Shenzhen-headquartered Chinese Internet services giant Tencent Holdings Limited is planning to invest in Korean celebrity management agency KeyEast Entertainment Co.,Ltd., potentially taking a 20% stake, according to Chinese media reports.

The investment has not been finalized, and specific valuation details are not available. But if completed, the deal could make Tencent the second largest shareholder of KeyEast, replacing Japan’s Softbank Corp.

Tencent’s investment may be aimed at securing highly popular content for its own online video channels. It may also consider producing its own television and video content, following the footsteps of U.S. Internet streaming media platform, Netflix.

The investment could also help Tencent further expand its massive social network platforms, and provide additional features such as product promotions.

Seoul-based KeyEast represents Korean television superstar Kim Soo-hyun, who has attracted massive followings in China via a hit TV show, My Love From the Star.

Tencent has been making big deals during the past couple of month. In March, it agreed to acquire a 28% stake of South Korea’s gaming company CJ Games for US$500 million.

At about the same time, Tencent agreed to acquire around 20% of Chinese Internet video company Youku Tudou Inc. for at least US$300 million.

Two weeks earlier, Tencent say it is to acquire a 15% stake in Chinese e-commerce firm JD.com for US$214.7 million.

China Expert network