After many rumors this year about which company will acquire Chinese video streaming service PPTV, it turns out that electrical appliance retailer Suning is taking a 44 percent stake for $250 million, a move that could see more content-loaded products for the living room arrive in the market.
It is getting harder to stand out in the world of Chinese electric products as even Internet companies are stepping into the space by developing their own smart TVs and set-top boxes. This latest trend has made traditional retailers such as Suning become unlikely bedfellows with firms including Alibaba, Baidu and Xiaomi.
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By becoming the largest shareholder in PPTV, Suning is now in a position to add multimedia content to its products. Sina Tech reports (hat/tip Tech in Asia) that at a press conference to announce the deal, PPTV said it plans to step into the space of smart products for the living room.
Lenovo-controlled Hony Capital is also forking out $170 million to take a 29.9 percent stake in PPTV, valuing the video site at $568 million. The cash flow will no doubt help PPTV start conquering the product market — a wise move considering that Internet giants are all eyeing the online video space as they seek to beef up their portfolios with video content, and all PPTV has to do is basically merge its content with Suning’s products.
Headline image via Alain Jocard/AFP/Getty Images