Enlight Media to Acquire 51% Stake in Mobile Gaming Firm Refeng
Shanghai Stock Exchanges, 6/17/14
Chinese TV content production company Enlight Media (300251.SZ) today announced plans to acquire a 51% stake in Hangzhou-based Refeng Network Technology for RMB 176.47 mln, to be paid through a combination of funds raised through Enlight Media's 2011 IPO and non-IPO-related cash.
Refeng Network Technology, established in October 2013, primarily develops and operates online mobile games. Mobile Naruto-themed card game Wo Shi Huoying (I am Naruto Uzukami), the first game developed by Refeng's wholly-owned subsidiary Beijing Refeng Interactive Network Technology, presently has a total of more than 30 mln users. Cumulative revenue from the game has surpassed RMB 100 mln, with single-month revenue reaching as high as RMB 28 mln.
Enlight has also announced that, following completion of the transaction, the two companies plan to jointly market mobile games based on Enlight Media film productions, slated to premier in H2 2014.
Refeng has guaranteed that the company will post profits of at least RMB 33 mln, 42.9 mln, and 55.77 mln, respectively, in 2014, 2015, and 2016, with Enlight Media to purchase the remaining 49% of Refeng (based on Refeng's present RMB 346 mln valuation) if the company meets these thresholds.
Editor's Note: For more background on this topic, please see "'Wo Shi Huoying' Weekly Revenue Hits RMB 12 Mln Over Holiday" MD 10/10/13 issue and "Enlight Media Purchases 51% Stake in BlueArc Animation" MD 6/17/14 issue.
Keywords: mobile gaming revenue users wireless Enlight Media 300251.SZ Wo Shi Huoying Refeng Interactive profit M&A
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