Tencent Plans to Invest $100 Million in India's MX Player
Chinese conglomerate Tencent Holdings Inc. (HKEX: 0700) and Indian e-commerce company Paytm reportedly plan to jointly invest about $100 million in Indian streaming service MX Player.
The companies are in the final stages of talks for a deal that would give Tencent leverage in India's booming social video market, according to Bloomberg citing unnamed sources.
MX Player, which claims 30 million registered users, was launched by South Korea-based J2 Interactive before it was acquired a year ago by India's Times Internet for $140 million.
"To put the number of users in context, 70 million daily active users in India is literally the population of many European countries," Karan Bedi, the chief executive officer of MX Player said to exchange4media.com in February.
Tencent is racing against other giants in India's market of video streaming in India. Hotstar, owned by Walt Disney Co. (NYSE: DIS) has been the market leader with 300 million monthly active users in India in April. YouTube followed closely behind, reporting 265 million monthly active users at the same time.
Earlier this year, Alibaba Group Holding Ltd. (NYSE: BABA) announced it was investing $100 million in Vmate, an Indian social video app which claimed 30 million users globally.