Datang Telecom to Acquire Gaming Firm Yaowan
Shanghai Stock Exchange, 6/27/13
Chinese telecom equipment manufacturer Datang Telecom (600198.SH) has announced that it plans to acquire Guangzhou-based browser and mobile game developer and operator Yaowan Yule Network Technology for a combination of stock and cash valued at approximately RMB 1.70 bln. 65% of the transaction will be carried out through stock issuances and 35% of the transaction will be carried out through a cash payment.
Yaowan Yule currently operates over 70 browser games on the company's own browser gaming platform as well as subsidiary company platforms. As of March 2013, Yaowan Yule's gaming platform had over 1.06 mln registered users, boasted average monthly revenue per paying user (ARPU) of RMB 570, an active user base of 863,000, and took in average monthly revenues of over RMB 25 mln.
Yaowan Yule's Q1 2013 revenue was RMB 124.26 mln, with net profit of RMB 30.80 mln. The company's total revenue and net profit for full year 2012 were approximately RMB 259.31 mln and RMB 27.01 mln, respectively.
Editor's Note: Datang Telecom last month dropped plans to acquire Shanghai-based browser game developer and operator Sanqiwan Network Technology. For more background on this topic, please see "Datang Telecom to Acquire Game Operator, IT Services Firm," MD 4/26/13 issue; and "Datang Telecom Abandons Acquisition of Game Firm Sanqiwan," MD 5/23/13 issue.
Keywords: mobile gaming ARPU Internet profit revenue 600198.SH Datang Telecom registered users Yaowan browser game M&A active users online gaming
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