Tencent acquires stake in Caixin Media

Tencent, China's largest Internet company by market value, has acquired an undisclosed stake in Caixin Media, one of the country's leading financial news providers.

Caixin Media, established in December 2009, was headed by veteran editor-in-chief Hu Shuli. The Zhejiang Press Group paid 40 million yuan (6.35 million U.S. dollars) for a 40-percent stake, with four other shareholders holding the rest.

The Zhejiang Press Group, the company's largest shareholder, will keep its 40-percent stake following the introduction of Tencent as one of the company's shareholders, Caixin said on its official microblog.

"The purchase of a stake in Caixin is a strategic investment. The two sides will work to make financial news reach a broader audience," said Ye Guozhen, Tencent's investor relations manager.

Tencent said it will not be involved in Caixin's daily operations and Caixin will remain independent in terms of news reporting. The two companies are expected to launch cooperative new media projects.

In recent years, Tencent has been diversifying and expanding its services for online users. Last year, the company spent 450 million yuan on a 4.6-percent stake in Huayi Brothers Media Corp., a leading film producer.

Tencent's revenues surged 52.2 percent from one year earlier to reach 9.65 billion yuan in the first quarter of 2012, with net profits rising to 2.95 billion yuan, up 2.8 percent year on year.