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Sina to Sell 45% Stake in Gaming Subsidiary to Strategic Investors Whole Easy, Mijiao

Whole Easy, 12/12/17

Chinese online game virtual item trading platform operator and mobile game marketing and traffic distribution service provider Whole Easy Internet Technology (002464.SZ) (known as Key Ever Bright Decorative Technology prior to November this year) has announced that it signed an investment and strategic partnership framework agreement with the mainland China operating entity of Sina's (Nasdaq: SINA) microblogging platform Weibo (Nasdaq: WB) in the online gaming, advertising, and entertainment industry domains.

The agreement, signed between Weibo operator Beijing Weimeng Technology, Weimeng's wholly-owned online and mobile gaming platform operator subsidiary Weiyou Interactive Network Technology, and Shanghai-based Mijiao Investment Management on December 8, will see Whole Easy and Mijiao Investment Management take minority equity stakes in Weiyou Interactive.

Under the agreement, Mijiao Investment Management will set up an investment fund as a vehicle to invest in Weiyou Interactive and will be responsible for fund management. Whole Easy will also invest in Weiyou Interactive via share subscription in the investment fund.

The investment fund will inject RMB 500 mln in Weiyou Interactive, to be transferred to Weiyou within one year of the strategic partnership framework agreement. Following the capital increase, Weimeng Technology will control a 55% stake in Weiyou, and the investment fund will control a 45% stake.

Funds will be used mainly for Weiyou Interactive's main business operations and to acquire Xi'an Sina Game Development Information Technology.

Weiyou Interactive, the controlling shareholder of which is Weimeng Technology, mainly engages in game distribution, joint operation, and development. It currently operates gaming platforms including Sina.com's games channel, Wanwan Youxi, and Sina's official online browser game and mobile game platform Weiyouxi (Microgame). In total, it operates more than 600 game titles.

Mijiao Investment Management is an investment platform set up by Shanghai-based mobile and browser game developer and publisher Shinezone Network (in which Sina's Weibo was an early investor) and Weimeng Technology. It is considered a related party to Whole Easy Technology because Mijiao Investment Management is a general partner in Ningbo Ruisen, a major Whole Easy shareholder.

Editor's Note: According to public records, video game developer Xi'an Sina Game Development Information Technology is owned as to 40% by Weimeng Technology, 10% by Jiuzhou Jianyuan Investment Management (Shanghai) Center L.P., and 50% by various other individual investors.

Keywords: wireless Whole Easy Mijiao mobile gaming online gaming Internet Sina Weibo WB Weiyou 002464.SZ Weimeng Shinezone M&A

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