TodayIR: Happy Annunciation approaching with Tencent ambiguity on the acquisition of Fire Rock
DJ EQS-News: Delighted Annunciation approaching with Tencent uncertainty on the acquisition of Fire Rock
EQS-News/ 28/12/2020/ 10:20 UTC +8 Delighted Annunciation approaching with Tencent ambiguity on the acquisition of Fire Rock? On the eve of this Christmas vacation, the market rumored that the moms and dad business of Tik Tok, BtyeDance intended to acquire CMGE Innovation Group Limited (HKSE:302), though both companies had actually at the same time denied the merger rumors on the very same day, triggering the CMGE stock experienced a roller rollercoaster ride. On the other hand, there were reports for long that Fire Rock (HKSE:1909) had been the target of Tencent (HKSE:700), the giant of gaming industry. It ends up being interesting when both of them stayed ambiguous on this news without clear rejection. Last Tuesday (22 December 2020), Reuters quoted a market source as saying that Tik Tok’s parent business ByteDance plans to acquire CMGE at a cost of RMB$ 4 to 5 per share. Determined with the shareholdings of Fair Ridge, owned by Chairman of CMGE Mr. Xiao Jian and the Vice Chairman, Mr. Sin Hendrick, it is believed to be worth approximately US$ 275 million (around HK$ 2.145 billion). CMGE kept in mind in their announcement that while it has actually kept a close cooperation with ByteDance in its ordinary course of company, the marketplace report about acquisition was false. There needs to be a factor for the news. Who will be the ultimate genuine target of Tencent? What makes Tencent successful, lies on its willingness and courage to sprinkle out on mergers and acquisitions, consisting of 100% shareholding of Riot Games (designer of “League of Legends”), 84.3% shareholding of Supercell (designer of “Brawl Stars”), 40% shareholding of Legendary Games (designer of “Fortnite”), 11.5% shareholding of Bluehole Ginno Games( designer of “PUBG”). Therefore, reports lingered in the market that Tencent has actually been targeting on acquisition of a couple of video gaming business, consisting of Fire Rock, a video game developer who begins broadening its video game operation company, especially in China and Southeast Asian markets such as Vietnam and Thailand in this current years. Meanwhile, in September this year, Tencent revealed the opening of a new workplace in Singapore as a company center in Southeast Asia, which seems to reflect the group’s intention to shift its development focus to the Southeast Asian market as well. With Tencent shifting its concentrate on Southeast Asian market, apart from the first-line video games such as “PUBG” and “League of Legends” etc, it will needs plentiful “rudimental” video games similar to “Candy Crush” and “Angry Bird” to bring in leisure and casual video game players with steady intake power, which resonates with the target user group of “Fish Capturing Contest”, a game developed and introduced by Fire Rock. The video game has actually preserved stable earnings since its launch. For the year of 2019, Fire Rock’s revenue from the Asia-Pacific region rose by 1903% year-on-year to RMB$ 13.49 million. In the very first half of 2020, the revenue of Fire Rock’s Asia Pacific region even more increased to RMB 27.28 million, up 114 times year-on-year. The half-year efficiency of Fire Rock increased by 102% compared to that of the whole last year. What need to not be overlooked is that the founder of Fire Rock, Mr. Zhang Yan has an affinity with Tencent. Prior to establishing Fire Rock, Zhang has actually likewise established the Domain Computer system Network Company Limited (” Domain Computer Network”) in 1997. Tencent has actually acquired 19.9% shareholdings of Domain Computer Network in 2005 and ultimately a complete acquisition in 2010. Given that the acquisition, there have been reports that Zhang has a really close relationship with Tencent which the market presumes that Tencent may likewise obtain Fire Rock in the future, not to mention, with the appealing company performance of Fire Rock and the all-rounded development of the Company upon the acquisition. File: Pleased Annunciation approaching with Tencent obscurity on the acquisition of Fire Rock  28/12/2020 Dissemination of a Financial Press Release, transferred by EQS Group. The issuer is solely responsible for the material of this statement. Media archive at www.todayir.com 1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=a86e6fc030832158ca0926e4133f8048&application_id=1157490&site_id=vwd&application_name=news
( END) Dow Jones Newswires
December 27, 2020 21:20 ET (02:20 GMT).
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