Chinese streaming firm Leshi Internet Information and Technology (LeTV) will acquire an 18 per cent stake in the country’s largest 4G smartphone vendor Coolpad, making it the second-largest shareholder after Data Dreamland.
LeTV will buy over 780 million shares for around $353 million from Data Dreamland, and the latter will see its stake go down to 20.3 per cent, meaning it will no longer be a controlling shareholder.
LeTV has been trying to diversify into the smartphone and electric car manufacturing industry after the Chinese government restricted the streaming of overseas programmes on online platforms.
It recently moved into the smartphone market and in April introduced three custom Android models targeted at different segments.
Coolpad has around 5,000 patents that LeTV could benefit from.
Meanwhile, TechWeb reported that when Zhou Hongyi, CEO of Qihoo, a leading internet company and LeTV’s rival, heard of the deal, he said he had been“stabbed in the back”.
Qihoo 360 invested $409 million to take a 45 per cent stake in a joint venture with Coolpad in December last year.