China Auto Parts Manufacturer Buys Mobile Developer for $1 billion
The Chinese Zhejiang Century Huatong Group, specializing in the manufacture of plastic seals for cars, is buying a mobile game development company CMGE for $ 1 billion.
Zhejiang Century Huatong Group plans to spend about the same amount in the near future on the acquisition of four more gaming companies. That is, in total, the Chinese company plans to invest about $ 2 billion in game development.
As for CMGE, this company positions itself as one of the leading game developers and publishers in China. According to IndieGamesAsia.biz , among the company’s hits at the moment are five projects:
- Legend of Sword and Fairy (新仙剑奇侠) – $7.6 million per month with a MAU of 3.9 million (ranked 11th in the Chinese gaming gross on iOS)
- Superhero (超)) – $2.6 million per month
- Jue Zhan Sha Cheng – $3 million per month (ranked 24th in the Chinese gaming gross on iOS)
- Fu Hao Jin San Shun (富豪金三)) – $6 million per month with a MAU of 29.4 million
- San Guo Wei Li Deluxe Edition (三国强强版) – $2.9 million per month
After the purchase, CMGE is going to release 13 more projects this year, and 9 in 2017. Some of them will be created based on world franchises.
Despite the fact that we found mentions in a number of sources, including Forbes, we could not find official press releases from Chinese companies. Moreover, the deal itself is now raising questions. In particular, is Zhejiang Century Huatong Group, whose quarterly profit for the first quarter of this year is expected to be around $15-19 million, able to pull such a purchase at all. Plus, CMGE recently withdrew from the stock exchange, becoming a daughter of the investment holding Pegasus Investment Holdings Limited (not to be confused with Pegasus Global Holdings and Pegasus International Holdings). Why did CMGE do this then, from whom exactly does Zhejiang buy it?
In any case, such deals are nothing new for China. Two years ago Zhongji Holding, engaged in metal trading, real estate and the sale of construction materials, has laid out $ 1 billion for the authors of Family Farm and Barn Voyage – the company DianDian Interactive.
Sources: pocketgamer.biz, Forbes, App Annie, insidegamesasia.biz
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