A large entertainment company, including a major Chinese streaming giant, is closing its doors and merging with a larger entertainment company.
The merger is a win for both companies as they seek to diversify their business models and improve their bottom lines, according to a person familiar with the matter.
Gaijin and Young Money are the largest Chinese streaming platforms in the world, according the data provider iSpot.
They had a combined $4.3 billion in revenue in the third quarter of this year.
The companies also announced last week that they are merging to create the largest and most powerful entertainment company in the United States, with a combined valuation of more than $9 billion.
The merger has been in the works for several months.
Gajan Kothari, the chairman and CEO of Gaijins Entertainment Group, told the South China Morning Post newspaper that he and the rest of the group were very proud to announce the merger.
He said that they wanted to create a powerful entertainment group in the US and were looking forward to working with both companies and the new company to grow their business together.
The two companies have been collaborating to expand their brands and business models, according a statement from Gai Jin Entertainment Group.
The new company will be based in the San Francisco Bay Area, the statement said.
The merger comes at a time when streaming platforms are looking to take more risks.
Last month, YouTube pulled out of the Chinese market after losing $1 billion in a series of regulatory setbacks.
Last year, Amazon, one of China’s largest internet companies, also announced it was shutting down its operations.