September 20: Jia Yueting, the owner of LeSports, has signed an Equity Transfer Agreement with a group of wealthy investors to sell a majority of the 30.66% shares of the sports company in his hands, according to a report by Tencent Finance.

Jia controlled LeSports through Lele Hudong Sports before this agreement. Other shareholders of the LeEco sports arm include Beijing Pengyi (12.93%), Leshi Internet Information & Technology Corp (6.47%), Jack Ma’s Yunfeng Capital, Wang Sicong’s Pusi Capital, HNA Capital and more than 10 celebrity investors like Tamia Liu, Sun Honglei and Zhou Xun.

According to Tencent Finance, Jia spent almost a half of LeSports’ RMB 8 billion raised in Series B financing during April 2016 on LeEco’s mobile phone and auto businesses. This led to a shortage in funds in the second half 2016, causing difficulties to the LeSports business. Although LeEco Holdings has paid off more than RMB 1 billion media rights fee for LeSports, there still remains a debt of RMB 2.5 billion to be cleared off.

The new investment will also cover Jia’s existing debt to LeSports, and the acquisition fund will be paid straight into LeSports’ account, an informed source told Tencent Finance.

The source also said that new owners will reconstruct the board of directors to reduce the side effects of LeEco on LeSports’ management system. Changes will also take place in the sports company’s business strategy. For example, its new media business is expected to adopt a different model through alliances and partnerships. In addition to this, the new sports company will continue to promote the development of sports town businesses as well as develop hi-tech businesses like artificial intelligence and data mining.

LeSports declined to comment on the details of the transfer agreement.

Source: qq

Proofread by William Logsdon