Jakks Pacific penetrates China market with 3.5 million shares

The US multibrand company recently sold common stock worth $19.3 million to Hong Kong's Meisheng as part of its plan for global expansion.

Setting sights on China as a potential market, California-based toys and consumer products manufacturer Jakks Pacific began further expansion of its global reach by entering a joint venture deal with Hong Kong Meisheng Culture Co. Ltd. The said transaction was reported to involve the acquisition of 3,660,891 of Jakks' common stock, amounting to $19.3 million. It is currently subject for approval by Meisheng Culture & Creative Corp. Ltd, Meisheng's parent company, and China's regulatory filings.

Jakks Chairman and CEO stated: "This should fortify our existing relationship as joint venture partners in two jointly owned companies - one that distributes JAKKS products in China and the other that develops new animation content owned by JAKKS and Meisheng. We expect the expanded relationship with Meisheng will put us in an advantageous position to realize greater opportunities in China."

As part of the deal, once finalized, Xiaogiang Zhao, Meisheng's executive director and parent company Meisheng Culture & Creative's chairman of the board, will take a seat as a member of Jakks' board of directors, as well as chair of a newly created commercial development department.

Jakks' growing reach in China is not new. Just last month, the company renewed a multiyear licensing agreement with Disney, securing rights to more than 50 Disney properties, including characters from Moana and Beauty and the Beast, which will be distributed in China.

This stock acquisition also marks Meisheng as the largest shareholder of Jakks Pacific, already owning 1.6 million shares before this new transaction. Last October 2016 saw the launch of Studio JP, which markets toys through cartoons, in partnership with Meisheng's Rising Anime animation studio.