Wanka Online Inc. has announced a capital increase in its joint venture, Suzhou Jinglan Cloud Technology Co., Ltd., with the introduction of a new investor, Suzhou Huanxiu Lake Xincheng Phase II Industrial Investment Fund. This capital increase, amounting to RMB60.0 million, aims to expand the joint venture's mobile advertising business and support its rapid growth. Despite the changes in shareholding structure, Wanka Online will maintain its controlling interest, ensuring continued consolidation of the joint venture's financial results into its own statements.
The formation of Horizon Global comes at a "dynamic moment" for the ad industry, according to Bob Lord, interim CEO of the new joint venture. Agencies are contending not only with the rise of technology like generative AI, but also increased category consolidation that is lending competitors even greater scale. Omnicom Group and Interpublic Group, for example, are on the path to forming the world's largest ad-holding group after agreeing to a finalized consent order from the Federal Trade Commission on Friday.