China Tightens Regulations on Gaming M&A Deals
DoNews, 4/29/14
The China Securities Regulatory Commission (CSRC) has issued new regulations for mergers and acquisitions for listed companies in the gaming space, stipulating that the acquiring company must provide the following information for all M&A deals submitted to the CSRC for approval: total number of players of the company's leading games, total paid users, active users, average monthly revenue per user (ARPU), paid user ratio, user age and location demographics, and partner mobile game developers.
In addition, the CSRC will verify the authenticity of the companies' financial reports through independent financial advisors, focusing on the artificial inflation of paid user figures by employees paying for their company's own games. The independent financial assessment should be included as part of the application for each future M&A deal.
Keywords: online gaming Internet CSRC M&A mobile gaming regulation
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