Beijing-based Perfect World Co. Ltd., an online game operator and developer with titles such as Legend of Martial Arts, Perfect World, Chi Bi and Hot Dance Party, has made investments into two fellow Chinese media companies.
Perfect World will dump 110 million yuan (approximately $16.2 million U.S.) into Beijing Xinbaoyuan Movie & TV Investment Co., Ltd. and an additional 82.3 million yuan (approximately $12.1 million U.S.) into Shanghai Baohong Entertainment and Media Co., Ltd. Both investments were described as majority stakes for the game company.
Both Xinbaoyuan and Baohong—headed up by “renowned” director Zhao Baogang—were labeled as “engaged in the film and television program production and distribution business.” Xinbaoyuan also operates an entertainment agency business, representing over 20 Chinese celebrities.
Chairman and Chief Executive Officer of Perfect World Michael Chi stated, “We believe the expertise, creativity and innovation, and strong reputation of both companies in the film and television industry will bring new, future growth opportunities to our company, while creating synergies with our core gaming business primarily through content generation and co-promotion.”
Both acquisitions are subject to the approval of the shareholders of Xinbaoyuan and Baohong.
In its first quarter ending March 31, 2010, Perfect World reported revenues of 625.0 million yuan (approximately $91.6 million U.S.). Fiscal year 2009 results showed revenues of 2.144 billion yuan (approximately $314.2 million U.S.) and net income of 1.037 billion yuan (approximately $152 million U.S.).