Yet another Chinese group, whose investors have not been identified, is eyeing media assets. The deal could trigger national security concerns and is likely to face increased CFIUS scrutiny.

A pioneering technology publishing company and owner of market research firm IDC, International Data Group is in talks with a Chinese investment group to sell itself for more than $1 billion, as per sources familiar with the matter at hand.

The Chinese investment group is headed by Hugo Shong, Chairman of IDG of Greater China. So far the identity of other investors in the group as well as the exact size of the deal was not disclosed nor could it be learned. As per sources familiar with the matter, the deal could be valued anywhere in the range of $500 million to $1 billion.

Sources preferred the cover of anonymity since the matter is private. Although discussions are at an advanced stage, since the deal has not been finalised, it is possible that the talks could fall apart, cautioned sources.

Earlier this year in January, IDG had stated that its board had hired Goldman Sachs to be its investment banker to explore the possibility of strategic options.

Goldman Sachs declined to comment.

The sale could face strong regulatory headwinds since the Chinese investment group will need to seek the approval of the U.S. Committee on Foreign Investment (CFIUS). CFIUS scrutinizes deals which attract national security concerns before they are finalised. Given Donald Trump’s tough posturing on China, investments by U.S. companies in China could be affected.

One potential troublesome area could be IDC’s role since IDG’s research division consults many tech companies in the U.S. on their business strategy and IT spending, including keeping track of shipments, said sources.

Furthermore, CFIUS has expanded its reach to areas that are beyond traditional national security concerns, such as semiconductors, electronics, commercial IT and aerospace.

In the event of the deal passing regulatory concerns, it would marks the latest sale of media assets to Chinese investors.

Earlier this month, Dick Clark Production was sold to China’s Wanda for $1 billion. Similarly, J.D. Power and Associates, a data provider on customer satisfaction for big brands was also sold to a group which had Chinese funding.

Categories: Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Tags: Top, Chinese funding, Chinese investment group, China, media assets, divesture, divest, divestment, IDG, International Data Group, IDC, market research, M&A, merger and acquisition,