Following rumors that Tencent might acquire a stake in Caixin, the respected Chinese media company confirmed via Sina Weibo last night that Tencent has indeed become a shareholder:
Following Caixin’s most recent round of financing, we are happy to welcome Tencent as one of our shareholders. This does not change ratio of Caixin stock held by controlling shareholder Zhejiang Daily Press Group. Tencent will not participate in Caixin’s day-to-day operations, and Caixin will continue to retain its independent editorial control and provide our audience with high quality financial news and information.
Rumors had Tencent’s share pegged at 20 percent, but neither company has disclosed the actual size of the stake Tencent has purchased. It must, however, be smaller than the Zhejiang Daily Press Group’s 40 percent stake.
Even though it’s a print media company at heart, buying a stake in Caixin does make some sense for Tencent, which is looking to expand offerings and services for users online on its news portals.
[Eastday and Global Times via Sinocism]
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