WPP invests in Chinese MySpace company

by Nikki Sandison, Brand Republic 30-Aug-07, 09:20

LONDON - WPP has invested in the Chinese venture capital company that is leading the launch of MySpace in China.

The Daily Telegraph has reported that the marketing services group, headed by Sir Martin Sorrell, has put an undisclosed sum into China Broadband Capital Partners, a Beijing-based investor in the technology and media sectors.

Co-investors in the China Broadband fund include Rupert Murdoch's News Corporation, which owns MySpace; China Netcom, a large fixed-line operator; and PCCW, the Hong Kong media group.

China Broadband's most significant investment so far is its acquisition of a stake in MySpace China, which is yet to be launched.

A test version was unveiled in April, but News Corporation did not reveal any details of its performance.

China Broadband is headed by Edward Tian, who is a prominent executive in China's telecoms and media industries and is understood to be friends with Murdoch.

Tian stepped down as deputy chairman of PCCW last month. He was previously chief executive of China Netcom and is also a senior adviser to US private equity firm Kohlberg Kravis Roberts.

Last week, WPP posted revenues up by 5.3% for the first six months of 2007, compared with the same period last year. China and India were the strongest performing regions, with revenues up 29% and 22% respectively.