Chinese VoD platform YOU On Demand has received an initial $4 million investment from the Chinese mobile video service provider C Media, with the right to make an additional investment of between $12 million and $21 million.
C Media’s investment is meant to assist YOU On Demand with its push into the mobile video space. The two have established the mutual goal of entering into a mobile distribution deal in the coming 6 to 12 months.
Xuesong Song, co-founder, chairman, CEO and the largest shareholder of C Media, said, “Shane McMahon and his team are building YOU On Demand into a world-class company with impressive content and cable distribution capabilities. I have been impressed with their recent penetration into the cable space and I believe their organisation is uniquely positioned to take advantage of the tremendous growth potential in China’s booming entertainment market. We look forward to partnering with YOU On Demand and utilising our mobile industry expertise to support the ongoing expansion of their Video On Demand platform and complementary services.”
Shane McMahon, the chairman of YOU On Demand, stated, “We are extremely pleased to welcome C Media as a strategic investor and partner. C Media’s significant investment is not only a strong vote of confidence in YOU On Demand’s business model and potential, but it will also help address the Company’s financing needs for the foreseeable future and allow management to focus its time on pursuing growth opportunities.”
“We appreciate C Media’s long-term strategic view of YOU On Demand,” continued McMahon, “and believe that having access to Mr. Song and his wealth of experience and success in China, as well as C Media’s mobile expertise, will play an important role in YOU On Demand’s success over the years to come. Our organisation continues to aggressively pursue its strategy of providing the best and highest quality entertainment to consumers in China and partnering with C Media represents a tremendous opportunity to further expand our distribution footprint.”