IDG announced that it has entered an agreement for the Chinese company to acquire IDG and its subsidiary IDC for China Oceanwide.
Industry Analysts reported that IDG Communications and IDG Ventures have been given the go-ahead from the Committee on Foreign Investments in the US (CFIUS) for the “transaction,” and that once this is signed China Oceanwide will be the “controlling shareholder of IDG’s operating businesses, which includes IDC and IDG Communications. As yet the terms have not been publicised, but the deal is expected to be finalised in the first quarter of 2017.
IDG’s headquarters will remain in Boston, Massachusetts and the management team will continue as they are, and President and CEO Michael Friedenberg will remain in his position, but a new board of directors are to be appointed after the deal is closed.
Walter Boyd, Chairman of IDG, said: “In an effort to carry on the legacy of late founder and chairman Pat McGovern, we have been focused on determining the optimal future balance between what’s best for IDG and Pat’s mission for the McGovern Foundation. We believe China Oceanwide and IDG Capital will provide the right financial, strategic and cultural fit to take IDG to greater heights.
“Pat made 130 trips to China over his career, and together with longstanding IDG executive Hugo Shong they established IDG’s media, market research and venture capital businesses in China. We are happy to announce, and I believe Pat would be delighted to know, that China Oceanwide and IDG Capital are willing partners who will continue to invest in IDG’s business and drive growth across all three of IDG’s diverse and valuable assets – IDC, IDG Communications and the IDG Ventures portfolios.”
Zhiqiang Lu, Chairman of International Portfolio Expansion at China Oceanwide, said: “IDG is a natural extension for China Oceanwide’s international portfolio expansion. As a world leader in market research and insights, a publisher of many of the tech industry’s most established media brands, and a successful venture investor, IDG’s strong global brand and profile make for an attractive strategic investment for us.
“We plan to support IDG’s current management team as they implement their business plans, providing them with the autonomy, financial support and commercial resources that can support IDG’s growth and expansion and further enhance its leading position in the market.”