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Disney and Li Ka-shing pact for NBA China stake |
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Written by Patrick Frater
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Tuesday, 15 January 2008 |
HONG KONG – Disney, Hong Kong businessman Li Ka-Shing and three Chinese financiers have invested $253 million in NBA China, a new sports rights body that aims to harness the huge popularity of basketball in China.
The investors stake buys them 11% of NBA China and puts an initial value of $2.3 billion on the org. Disney is buying 5% while Li's charity Li Ka-shing Foundation, Bank of China, China Merchants Bank and Legend Holdings, parent of computer giant Lenovo, split the remaining 6%.
NBA China was founded in May last year with former Microsoft China boss Timothy Chen Yongzheng was appointed as its CEO in the fall.
"We are delighted to be participating in this promising venture in what's become one of The Walt Disney Company's most important markets. This investment adds to our wide range of exciting businesses in China, from theme parks to retail outlets and from movie-making to mobile games," Walt Disney topper, Robert Iger said in a statement.
"Basketball is a global phenomenon, a sport that has brought nations together through the spirit of friendship and healthy competition," Li told Hong Kong newspapers.
N.B.A. China will have the right to create teams in China, and will own all broadcasting rights and merchandising. Unusually in China, it will retain some ownership in teams created in the country.
“With the support of its strategic investors and additional investments in China, I think the NBA and the CBA can expand upon our past cooperation to further develop basketball in China.” Chinese Basketball Association executive VP and secretary general, Li Yuanwei said.
The sport's popularity in China has been ramped up by performance of Yao Ming for the Houston Rockets and Dallas Mavericks' Chinese star Wang Zhizhi. Next month's Chinese New Year celebrations will see the launch of "Kung Fu Dunk" a basketball cum martial arts movie. Pic, long on special effects and starring pop music sensation Jay Chou, is set to be one of the biggest Chinese-language movies of the year.
Li, who owns stake in numerous media groups including Tom.com and Golden Harvest, last month paid $60 million for a slice of social networking website Facebook.
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Last Updated ( Tuesday, 15 January 2008 )
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