National Business Daily, 4/22/14
Zu Teng, head of Chinese education services provider New Oriental's (NYSE: EDU) operations department, has announced the establishment of a new mobile education subsidiary, Leci Network Technology. Leci has completed registration as a company in China, with Zu himself to serve as CEO.
Leci will soon release a self-titled mobile app for learning English vocabulary. Version 1.0 of the app will feature short video clips of New Oriental teachers explaining the meaning of individual vocabulary words. Video explanations of 200 words will initially be provided, with more to be added eventually if the feature is deemed a success. The app will be released for public beta testing on April 28 on Baidu's (Nasdaq: BIDU) Baidu Mobile Assistant, 91 Assistant, and HiMarket app distribution platforms. Leci anticipates that social features will eventually be added to the app, allowing users to "study together with friends." While the app itself will be free, Leci will charge fees for short online classes offered through the app.
Editor's Note: For more background on this topic, please see "Rumor: New Oriental Spins Off Online Education Business" MD 2/17/14 issue.