Hong Kong media companies buy 75% stake in e-commerce firm Ztore

Ztore owns two e-commerce platforms in the city.

Hong Kong-based media companies, Television Broadcasts (TVB) and Shaw Brothers, are buying a 75% stake in local e-commerce operator, Ztore, for $25.67m (HK$200m), a bourse filing revealed.

In this investment, TVB and Shaw Brothers will invest in a newly established special-purpose vehicle that will invest in Ztore, in which TVB will own a majority of shares and voting rights.

Ztore’s owns and operates two e-commerce platforms in the city, namely ztore.com and neigbuy.com. Its co-founders, existing CEO Danny Shum Tik Chan and COO Jack Leung Tsz Ki, will continue to lead the e-commerce company after the transaction.

“TVB will benefit from Ztore’s e-commerce managerial resources to support future growth. The transaction will also accelerate customer acquisitions and GMV for Ztore with the increased promotion on TVB’s channels and platforms,” TVB said in a press release.

TVB’s core business is in terrestrial television broadcasting and programme production, but it has in recent years been investing in direct-to-consumer businesses including video streaming services and e-commerce alongside traditional advertising services.

The company is expected to expand the scale of its e-commerce business by over four times in terms of gross merchandise value immediately after this transaction.