Red Culture Net｜CCTV, Beijing TV invested in Douyin and Kuaishou with 1% shares, and have veto power

Screenshot of Weibo user

Douyin was invested in by the state-owned CCTV with 1%, and Kuaishou was invested in by the state-owned Beijing Television with 1%. The public-private partnership of the short video live broadcast track has begun. “Special management shares” have quietly landed on short video platforms. Special management shares have a low share ratio but high voting power, controlled by the government, and exercise a veto power over major Internet companies.

The special management share system was proposed in November 2013 by the Third Plenary Session of the 18th CPC Central Committee’s “Decision of the CPC Central Committee on Several Major Issues Concerning Comprehensively Deepening Reforms”, which required exploring the implementation of a special management share system for important state-owned media enterprises that are transformed according to regulations.

In February 2014, the Second Meeting of the Central Leading Group for Comprehensively Deepening Reforms reviewed and approved the “Implementation Plan for Deepening the Reform of the Cultural System”, which listed the pilot implementation of the special management share system in media enterprises as a key task for 2014. In August 2015, the “Guiding Opinions of the CPC Central Committee and the State Council on Deepening the Reform of State-owned Enterprises” (see: https://www.gov.cn/zhengce/2015-09/13/content_2930440.htm) proposed to promote the reform of the company system and the shareholding system, allowing some state-owned capital to be converted into preferred shares, and exploring the establishment of a national special management share system in a few specific fields.

There are two models of the internationally common special management share system:

The first is the golden share system. The government only holds one golden share and does not interfere in daily operations, has no right to income or other voting rights, but enjoys the exclusive veto power on certain special matters.

The second is the multiple-voting-rights share system. That is, each share enjoys several voting rights, also known as multiple-voting-rights shares. This type of stock is usually issued to specific original shareholders, with the purpose of ensuring the original shareholders’ control over the company, to restrict the control of the company by external shareholders, or to restrict the dominance of foreign shareholders over domestic industries.

According to the article “How to Test the Pilot of the Special Management Share System?” published by the China Press and Publication Research Institute, the implementation of the special management share system in China is for:

First, piloting the special management share system is conducive to strengthening ideological management and adhering to the correct orientation.

Second, the special management share system is conducive to realizing diversified equity and improving the modern enterprise system.

Third, exploring the implementation of the special management share system is conducive to the development of a mixed economy.

Fourth, exploring the implementation of the special management share system is conducive to the implementation of senior management shareholding and employee shareholding.

According to Tianyancha information, on October 26, 2022, Kuaishou conducted a strategic financing, and the investor was Beijing Radio and Television Station.

At the same time, it can also be seen that the two major shareholders of Kuaishou are currently Beijing Huayihuilong Network Technology Co., Ltd. (holding 99%) and Beijing Radio and Television Station (holding 1%).

According to Tianyancha information, Beijing Radio and Television Station conducted an external investment on October 28, 2022, and the invested enterprise was Beijing Kuaishou Technology Co., Ltd.

It is reported that Beijing Radio and Television Station is involved in “the creation, production, production, broadcasting, rebroadcasting, and operation of radio and television programs, radio and television transmission and coverage, the production and dissemination of new media products, radio and television and new media research and advertising operations, related technology innovation applications and technical services, and cultural-related industry investment and operation”. The operating funds of this public institution are 30 million yuan.

Previously, Beijing Radio and Television Station had in-depth cooperation with Kuaishou to promote Beijing’s internet-famous check-in locations using short videos.

On November 18, 2020, the first list of Beijing’s internet-famous check-in locations was officially released. The “VLOG Challenge Competition for Removing Grass” activity, jointly initiated by Beijing Radio and Television Station and the Kuaishou platform, called on citizens and tourists to use short videos to check in at internet-famous locations and recommend the new Beijing. Citizens and tourists only need to shoot Vlog videos or photos of internet-famous check-in locations, add the topic #Beijing Internet-famous Check-in Locations# on the Kuaishou platform, and post “@BTV News” on the main account to share their internet-famous check-in location appreciation secrets to participate in the competition. Whether it is natural or cultural attractions, or food tasting and store exploration, as long as you like it, you can share it after “removing the grass”. The outstanding works finally selected will also receive surprise awards, and participants can also receive the honor of “Removing Grass Action Recommendation Officer”.

In September of this year, the Beijing Municipal Radio and Television Bureau went to Kuaishou Technology for research. According to the Capital Radio and Television Baijiahao: On the afternoon of September 16, Wang Jiequn, Secretary of the Party Group and Director of the Beijing Municipal Radio and Television Bureau, led a team to Beijing Kuaishou Technology Co., Ltd. for research. Wang Zhi, member of the Party Group and Deputy Director of the Beijing Municipal Radio and Television Bureau, and relevant responsible comrades from the Network Audiovisual Program Management Office and the Media Integration Development Office participated in the research.

At the same time, Douyin, which is also a giant in the short video track, also received an investment from Wangtou Zhongwen (Beijing) Technology Co., Ltd. last year.

Currently, Tianyancha shows that Beijing Douyin Information Service Co., Ltd. is jointly held by Douyin Co., Ltd. and Wangtou Zhongwen (Beijing) Technology Co., Ltd., with a shareholding ratio of 99% and 1% respectively.

So, what kind of company is Wangtou Zhongwen (Beijing) Technology Co., Ltd.? Through inquiries, it was found that this company is jointly held by Zhongwangtou (Beijing) Technology Co., Ltd., Beijing Cultural Investment Development Group Asset Management Co., Ltd., and CCTV Rong Media Development Co., Ltd., of which CCTV Rong Media Development Co., Ltd. holds 30%.