Beijing-based Huayi Brothers is acquiring a 20% stake in Chinese eSports and mobile gaming company Hero Entertainment for $288m (RMB1.9bn).
Hero Entertainment is mainly engaged in the development and management of eSports game products as well as organising and promoting mobile eSports competitions.
The company, which has a footprint in mainland China, Hong Kong, Macau, Taiwan and Southeast Asia, is the organiser of Hero Pro League (HPL), one of the most popular mobile eSports tournaments in China. It’s also a sponsor of the Ying Xiong Lian Meng or Heroes Alliance, a China-wide mobile eSports games association.
Hero Entertainment’s existing investors include Sequoia Capital, Huaxing Fund, ZhenFund and Dalian Wanda Group founder Wang Jianlin’s son Wang Sicong. Tianjin Dinuo Investment Management is the largest shareholder with a 44% stake, followed by Huayi Brothers with 20%.
Under the terms of the agreement, Huayi Brothers has been granted right of first refusal in terms of adapting any of the eSports games developed or managed by Hero Entertainment into films, TV series, web series or other media formats.
Meanwhile, Huayi Brothers’ subsidiary Huayi Brothers (Tianjin) Interactive Entertainment is to consider Hero Entertainment as the partner of choice for the joint development of any eSports games within its interactive environment.