Chinese online video-streaming giant Letv has set out on an ambitious plan to build up its hardware capabilities and content portfolio in separate deals with Hong Kong-listed companies TCL Multimedia Technology and Digital Domain Holdings. Letv has agreed to acquire 20 per cent of TCL Multimedia for HK$2.27 billion (US$293 million), making it the second-largest shareholder of one of the world’s largest television manufacturers.
TCL expects its smartphone revenues to grow 30% on year in 2015, during which it will also begin to push sales of its smartphones in India and Brazil, according to company chairman Li Dongsheng. Sales of smartphones to overseas markets contributed the most to TCL’s earnings recently as the company was able to mass-produce 4G devices in large volume promptly, optimizing on its FDD-LTE IP portfolio, Li said during an interview with Japan-based Nikkei News.
Chinese consumer electronics group TCL formally announced that they will acquire the Palm brand from HP. Li Dongsheng, chairman of TCL Group, said that the acquisition of Palm is different from the acquisition of Alcatel. Palm has its fans in America and its operating ideas are similar with Apple and this type of fandom can give Palm strength. Li said the Palm brand still has value in some of the global markets and people expect its re-emergence to continue to provide innovative products.
China-based vendor TCL Communication Technology Holdings has managed to ramp up its smartphone shipments to over five million units a month since October and will reach its goal of shipping 40 million smartphones in 2014, according to the company. Additionally, total monthly handset shipments also surpassed eight million units in the past two months to November, buoyed by increasing shipments to Latin America, Russia, Europe and Africa, said the company.
TCL Group plans to team with its two subsidiaries TCL Multimedia Technology Holdings Limited and TCL Communication Technology Holdings Limited to invest CNY90 million to create a joint venture in Hong Kong through which the group will build a foreign-invested company in China for the operation of smart home projects. TCL Group and TCL Multimedia will hold a 30% stake in the joint venture respectively; while TCL Communication will hold a 40% stake.