China’s Kuaishou says state broadcaster has no veto rights over business

BEIJING, Nov 9 (Reuters) – Chinese short video app operator Kuaishou ( 1024.HK ) on Wednesday dismissed as untrue what it called “online rumors” that the state broadcaster would be able to veto its business decisions after taking a stake. in Beijing. subsidiary.

The company said state broadcaster Beijing Radio and Television Station (BRTS) had taken an ownership stake in one of its Chinese entities and that the deal did not affect the parent company.

The Beijing affiliate was cooperating with the state broadcaster on content-related issues, Kuaishou said.

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Chinese regulators are tightening their oversight of online content and the platforms that display it.

On Sunday, US technology publication Information reported that the state broadcaster’s recent acquisition of Kuaishou’s domestic business is a reflection of the Chinese state’s growing influence over its technology sector.

BRTS’s 1% stake in Kuaishou’s Beijing branch was registered on Oct. 26, according to company registration information. On the same day, the former CEO of the BRTS subsidiary, Shi Yisen, was officially given a seat on the board of the Kuaishou subsidiary.

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BRTS’s stake will help Kuaishou when it comes time to renew its license to broadcast visual and audio programs online, issued by the National Radio and Television Authority, said a source familiar with the situation, declining to be named. since the information is private.

BRTS did not immediately respond to a request for comment.

This is not the first state investment in Kuaishou.

China Internet Investment Fund (CIIF), set up by the finance ministry and the Cyberspace Administration of China (CAC), the internet’s top watchdog, holds about a 1% stake in the Cayman-based entity in Kuaishou, according to Kuaishou’s prospectus.

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CIIF and its affiliates have been active in investing in Chinese internet giants.

A CIIF-backed entity called WangTouZhongWen (Beijing) Technology last year took a 1% stake and a seat on the board of a key BiteDance China entity. Another CIIF subsidiary, WangTouTongDa, similarly holds a 1% stake in a key subsidiary of social media platform Weibo, according to government data.

Reporting by Yingzhi Yang and Brenda Goh; Editing: Clarence Fernandez, Robert Birsel and Jane Merriman

Our Standards: Thomson Reuters Trust Principles.


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