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Singaporean tech firm YuuZoo purchasing 33% of Relativity Media

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Singaporean tech firm YuuZoo purchasing 33% of Relativity Media

Singapore-based e-commerce and social media company YuuZoo Corp. agreed to buy a 33.3% stake in Relativity Media LLC in exchange for an equity investment starting at $50 million, with the possibility of increasing it to $150 million.

YuuZoo said in an Oct. 31 filing to the Singapore Stock Exchange that its stake will comprise class A preferred shares. There will be an initial investment of $27.5 million, with an additional infusion of $22.5 million to be made over the next five months.

YuuZoo will have the option to invest another $100 million during a one-year period after the deal's closing date, which would give it a majority stake in the California-based media company.

Under the deal, Relativity will make all of its film, TV, sports, fashion and music assets available for distribution on YuuZoo's platform. In addition, YuuZoo's payment service YuuPay will be used to make all of Relativity's online and mobile transactions. YuuZoo's partnership and franchisee network covers 68 countries.

Relativity is also restricted from accepting other equity investments without YuuZoo's written approval for two years.

In July 2015, Relativity filed for Chapter 11 protection but was able to emerge from bankruptcy earlier this year after a judge approved its reorganization plan. YuuZoo said in the filing that the deal was subject to completion of Relativity's corporate debt restructuring, as well as approval by the Singapore Stock Exchange.