Fosun Chairman Buys Into Romance Business

Fosun Group Chairman Guo Guangchang has agreed to take a controlling stake in a leading Chinese matchmaking company.

Guo, through a new investment company registered in Zhejiang province, has agreed to buy 69% of Baihe Jiayuan Network Group Co. Ltd. for nearly 4 billion yuan ($629.1 million), Baihe said in a statement (link in Chinese).

Once the deal closes, Guo will become the controlling owner of Baihe and won’t be able to sell the company’s shares for the following 12 months, according to the statement.

Baihe has been running two major matchmaking platforms since it merged last year with rival Jiayuan, a company that delisted from the Nasdaq Stock Market in the U.S. Baihe earned 65 million yuan in profit in 2017, improving from a loss the year before.

This will be the first foray into the dating business by either Guo or Fosun. As China’s younger generation has become better-educated, the country’s singles are getting married later in life as they grow more selective about choosing a spouse.

Single adults made up 14.6% of China’s population in 2015, more than double the 6% proportion in 1990, according to state-run broadcaster CCTV.

The matchmaking industry is a competitive business. Baihe and its biggest rival, Zhenai Inc., provide platforms for people looking to get married. Private equity firm PAG bought Zhenai after the matchmaking company failed to go public both at home and abroad. There are also platforms, such as the one run by Momo Inc., that target young people who are looking for more-casual dates.

Fosun, one of China’s most acquisitive conglomerates, seems to be building a portfolio of marriage and child care businesses. Its recent investments include parenting website Babytree and mobile app Qinbaobao, which allows people to upload, share and store baby pictures and videos.

Contact reporter Coco Feng (renkefeng@caixin.com)