PPTV, a Chinese peer-to-peer video streaming service, has been be acquired by Hony Capital of Lenovo and Suning, a Chinese home appliance retailer, for $420 million, as reported by Sohu IT (report in Chinese).

A new company will be jointly established by Suning and Hony Capital in Hong Kong, with the former taking a controlling stake. Suning will announce it this afternoon, according to the report.

Update: Suning has announced that it will invest $250 million in PPTV to get 44% in stake, becoming the company’s biggest shareholder. The rest $170 million will come from Hony Capital. Thus PPTV is valued at about $568 million.

PPTV reportedly has been looking for a buyer for a long time and companies that showed interest including Alibaba Group, Baidu, Sohu and Youku. It’s direct competition, PPS, was acquired by Baidu for $370 million.

PPTV has raised five rounds of funding,

  • 500 thousand USD in seed funding from Softbank in June 2005.
  • Several million USD in Series A from Bluerun Ventures and Softbank in January 2006.
  • $21 million in Series B from DFJ and Softbank in September 2007.
  • More than RMB 100 million from unnamed investors in November 2009.
  • Softbank invested $250 million for a 35% stake in PPTV in 2012.

The company generated RMB800 million in total revenue from online advertising and user subscriptions in 2012, once disclosed by its CEO Vincent Tao.

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com

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