Walt Disney Co. has formed a joint venture with Chinese new media firm BesTV that could help the Burbank entertainment giant increase its digital distribution in China. The deal was announced Wednesday.
The joint venture will operate digital businesses centered on Disney and BesTV services, products and content. The joint venture is 49 percent owned by Disney and 51 percent owned by BesTV New Media Company Ltd., a Shanghai firm that focuses on streaming TV and mobile entertainment for Asian consumers.
Stanley Cheung, executive vice president and managing director at Walt Disney Co.’s Greater China division, said the deal will help to expand the company’s reach to Chinese viewers who are watching content in new ways.
"The China digital landscape and industry is expanding and changing exponentially,” Cheung said in a statement. “This joint venture with BesTV seeks to serve Chinese consumers who are increasingly connected to their viewing experiences across multiple platforms.”
Walt Disney Co. shares closed up less than 1 percent Wednesday to $69.97 on the NYSE then rose to $70.35 in after-hours trading.