Chinese internet company LeTV, which operates the Le Sports service, has agreed a deal to acquire a 20-per-cent stake in media technology company TCL Multimedia and will form a joint venture with Digital Domain Investments to provide live sports virtual reality services.
LeTV and TCL Multimedia said that they would tap into the market of “large-panel internet users in the living room” with the aim of jointly developing products and content as well as other vertically integrated services.
The partnership will focus primarily on Europe, the US, Japan and Korea.
LeTV has agreed to acquire its stake in TCL Multimedia through a newly-established, wholly-owned subsidiary in Hong Kong. Upon completion of the deal, LeTV will become the second largest shareholder of TCL Multimedia.
Through the subsidiary, LeTV will invest $293m in TCL Multimedia and will also nominate two directors at TCL Multimedia.
Digital Domain said that the 50-50 venture would “develop, produce, broadcast, publish and distribute primarily 360 live sports events and related replays and virtual or enhanced reality or other immersive media content for China-originated and China-located sports events in which LeTV Sports have distribution rights.”
Digital Domain and LeTV have each agreed to invest $5m (€4.6m) into the joint venture, pending approval of the deal.
In November, Le Sports, which is operated by LeTV, acquired rights for the ATP World Tour men’s tennis series’ Masters 1,000 and 500 tournaments.