Whaley Technology, a smart TV startup established by China Media Capital (CMC), has earned support from two of China's leading e-commerce and Internet companies, Alibaba and Tencent.
The Chinese giants have both recently announced that they will be investing in the startup, as reported by the state-run Xinhua News Agency. However, the exact amount of investments was not disclosed.
Insiders nonetheless revealed that Whaley, also known as Wei Jing, has raised a capital worth $312 million.
Alibaba's and Tencent's move to invest in Whaley is seen by analysts as the firms' venture into the smart- or Internet-connected TV business, which is regarded as a major growth area in the future. Other technology firms, such as Xiaomi and LeTV, have earlier expanded into smart TVs.
On Thursday evening, Whaley launched its first product, a 55-inch, 4K resolution smart TV available at $595. Since weekend, Alibaba's TMall has been taking pre-orders.
According to CMC, it will provide content, together with Alibaba and Tencent. Meanwhile, Whaley will focus on technology.
If not ownership, CMC has business ventures with various media companies, such as IMAX China, Oriental DreamWorks, Time Warner, China Sports Media, STAR China, and Hong Kong's Television Broadcasts (TVB).
On the other hand, Tencent has business partnerships with National Geographic and National Basketball Association, and Alibaba has a hand over Alibaba Pictures Group, which has entertainment investments in Youku Tudou, Enlight Media, Wasu Media and Huayi Brothers Media.
Alibaba and Tencent have been rivals in many business areas, though the former takes it roots in e-commerce and the latter, in social media. The competition became fiercer as both have expanded their businesses in the offline arena.
One of these firms' few alliances is in the leading taxi-hailing app in China, Didi Kuaidi.