China’s Shanghai Media Group Merges Subsidiaries to Create Internet Giant

 

SHANGHAI — Shanghai Media Group has announced the latest stage of a massive restructuring plan, which will see its Internet TV company, BesTV, a Chinese partner of Microsoft, merge with its Shanghai Oriental Pearl business to create a giant new Internet and TV company.

he company said the merged entity will be the largest Chinese online media conglomerate. Both businesses have been publicly traded.

Shanghai Media Group, one of the country’s biggest TV companies, will have a 45.07 percent stake in the merged company, which will be called Shanghai Oriental Pearl New Media Co., according to a BesTV filing with the Shanghai Stock Exchange.

BesTV plans to raise up to $1.63 billion via a private placement of stock to acquire some other assets of SMG, the filing said.