Tangel Publishing to Acquire Mobile Gaming Firm Magic Universe
Tencent Tech, 8/27/13
Chinese Publishing house Tangel Publishing (300148.SZ) announced today that it plans to purchase a 100% stake in Beijing-based mobile game developer Magic Universe for RMB 1.25 bln through private share issuances and cash. Among the RMB 1.25 bln figure, the cash payment will be no less than RMB 362.20 mln.
Upon completion of the transaction, Tangel Publishing will absorb Magic Universe finance, business, and other operations, but will not implement major adjustments to Magic Universe's organizational structure or personnel.
According to the agreement, Magic Universe must achieve net profits of RMB 86.15 mln, RMB 120.10 mln, and RMB 150.14 mln in 2013, 2014, and 2015, respectively. Magic Universe's 2012 revenue was RMB 65.75 mln, an increase of 1,813% YoY. 2012 net profit was RMB 30.38 mln, compared to a net loss of RMB 7.61 mln in 2011.
Magic Universe was established in 2009. The majority of the company's revenue comes from its mobile MMORPG Wang Xian and its mobile online strategy game Sanguo Shidai Online. Wang Xian was released in June 2012. As of June 2013, monthly revenue from Wang Xian had reached approximately RMB 30 mln. Sanguo Shidai Online was released in February 2012. H1 2013 revenue from the game was RMB 17.88 mln.
Keywords: Tangel Publishing 300148.SZ Sanguo Shidai mobile gaming profit revenue wireless Magic Universe Wang Xian M&A
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