<article>Film company <a style="color: #000080;" href="http://www.huayimedia.com/entest/main1.html" target="_blank">Huayi Brothers Media Corp</a> has reportedly invested $288 million in <a style="color: #000080;" href="http://heroentertains.com/home.html" target="_blank">Hero Entertainment</a> to acquire 20 per cent stake in the mobile game maker.</article>

Film company <a style="color: #000080;" href="http://www.huayimedia.com/entest/main1.html" target="_blank">Huayi Brothers Media Corp</a> has reportedly invested $288 million in <a style="color: #000080;" href="http://heroentertains.com/home.html" target="_blank">Hero Entertainment</a> to acquire 20 per cent stake in the mobile game maker.
The deal makes Huayi the second largest shareholder in Hero Entertainment.
The deal values Hero Entertainment at 19 times its estimated net profit for 2016, as per commitments to profit performance provided by its management.
With Huayi Brothers as partner, Hero Entertainment plans to further increase its profitability, especially in films, TV shows, as well as eSports games.
“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 form, at the fair price and on equal terms,” said Hero Entertainment management in a joint press release.
“Meanwhile, Huayi Brothers&#8217; 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,” the company added.
The eSports firm committed to a goal of an audited after-tax net profit for 2016 of not less than 500 million yuan and estimated audited after-tax net profit for 2017 and 2018, in each case, 20 per cent higher than that of the previous year. These figures mean that Hero Entertainment&#8217;s net profit for the next three years is expected to be not less than 1.82 billion yuan.
Hero Entertainment is engaged in the development and management of e-sports game products as well as organising and promoting mobile eSports competitions. The firm has presence in mainland China, Hong Kong, Macau, Taiwan and Southeast Asia.
With a focus on further expanding into the mobile eSports game market, Hero Entertainment is not only the organizer of Hero Pro League (HPL), one of the most popular mobile eSports tournaments in China, but also the sponsor of the Ying Xiong Lian Meng or Heroes Alliance, a China-wide mobile E-sports games association, the largest of its kind in the country.
Hero Entertainment&#8217;s investors include <a style="color: #000080;" href="https://www.sequoiacap.com/" target="_blank">Sequoia Capital</a>, <a style="color: #000080;" href="http://www.huaxing.com/" target="_blank">Huaxing Fund</a>, <a style="color: #000080;" href="http://www.zhenfund.com/" target="_blank">ZhenFund</a> and Chinese real estate tycoon Wang Jianlin&#8217;s son Wang Sicong. Tianjin Dinuo Investment Management, which owns 44.028 per cent of Hero Entertainment, is the game publisher&#8217;s acting controller.
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China: Hero Entertainment secures $288m investment from Huayi Brothers

China: Huayi Brothers invests $288m for 20% stake in mobile game maker Hero Entertainment

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China: Huayi Brothers invests $288m for 20% stake in mobile game maker Hero Entertainment

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