Wu Bo, among a group of foreigners, confirmed Muhenet’s move to globalization
There have been rumors that Phoenix Media seeks to acquire mobile game company Muhenet. Voice of Game yesterday reported that Jiangsu Phoenix Publishing & Media Co., Ltd. (referred to as the Phoenix Media) confirmed its acquisition of 64% the shares of Shanghai Muhenet Technology Co., Ltd. (referred to as " Muhenet") with 320 million Yuan, becoming its controlling shareholder. When the news came, Wu Bo, CEO of Muhenet, was traveling with GMGC in Copenhagen, Stockholm, Malmö , Helsinki, and other places, developing the overseas market.
The M & news was heard back in early August, was not settled until yesterday. Affected by the good news, although in July the second-largest shareholder, Hony Capital, sold its holdings for more than 1.2 billion yuan, the price of Phoenix Media still maintained a rise, closing at 10.85 yesterday, a 0.46% growth.
On the same day, semi-annual report released by the Phoenix Media showed a net profit of 523 million Yuan, an increase of 8.74%. Phoenix media said that this investment is an important measure to help the company further expand the digital business, and to strengthen the company’s brand and influence.
It is understood that this Phoenix media signed an agreement on gambling with the original shareholders of Muhenet. The agreement says that in 2014 Muhenet shall present a net profit of no less than 52.91 million yuan, and in 2015 no less than 63.49 million yuan. If performance targets are not achieved, existing shareholders CPO Zhang Jie and President Zhou Hao will be compensated.
The acquisition showed a premium of nearly 10 fold. Although there is some overheated investment in the mobile game market, it also shows good prospects for this industry.
Muhenet is specialized in game development and operation, and have mobile, web and other types of games. Many of its products has made the world TOP50. Currently its main targets are United States, Russia, Singapore and other overseas markets, with strong R&D and overseas expansion capabilities. Assessment report shows that as of May 31, 2013, Muhenet’s net asset is 42.15 million yuan, the assessed value 485.63 million yuan, and the revaluation 1052.14%.
GMGC Secretary General David Song and Wu Bo in Helsinki, Finland
On the 17th this month, Wu Bo, CEO of Muhenet and a GMGC member, started to travel with the Nordic Mobile Game delegation in Denmark, Sweden, Stockholm, Malmö, Helsinki, Finland, and other places for a one-week business trip. During an VoiceofGame interview, Wu Bo said his company will continue to develop games, explore overseas markets, and strengthen human resources & products to make it a truly international company. The company has offices in Korea and other countries. This time his travel to Nordic also marks his intention for the European market.
According to GMGC Secretary-General David Song, last night after the dinner buffet, Wu Bo disappeared from the crowd. He might be busy with today's announcement or accepting media interviews.
This year the mobile market is very heated and has seen many A-share companies’ acquisition of mobile game companies. Industry sources indicated that the top 20 mobile game companies have become the targets of A-share companies.