Bytedance, the Chinese parent of the short video platform Tiktok, wants to take over the entire 27.6 percent of the shares of the China Mobile Games and Entertainment Group (CMGE) by Fairman Ridge Investment. As Reuters For teached circles, the Deal Bytedance should give a further lucrative business pillar, because the Covid-19 crisis has attracted the market with mobile games.
Fairman Ridge Investment is controlled by the CMGE chairman Xiao Jian and his deputy Sin Hendrick. Both hold a share of 27.6 percent of CMGE and are thus the big shareholders. The market capitalization of CMGE is to be $ 997 million, it is called Reuters Further. The BYTEDANCE-going share could therefore be worth around $ 275 million.
Currently, the negotiations are still running. According to insiders, ByteDance should have submitted an offer between 4 and 5 Hong Kongdollar, about 52 to 64 US cent. The situation between 30 percent and 60 percent of the course of Monday, which was about 3.08 Hong Kongdollar.
The notification of the planned purchase catapulted the stock of CMGE from the loss zone by about 21 percent on the highest level since mid-October.
Growth area games
ByTEDANCE sees the area of Games as a growth market. In the Corona crisis with the associated slugs from other entertainment opportunities and the circumstances to stay at home, more is played, the games downloads are rising. This sees ByTedance, which has been around for a long time to invest in investment options to expand its own portfolio, as a worthwhile purchase, it is called Reuters with regard to the people entrusted with the matter. ByTEDANCE and CMGE first did not want to go to the deal.
ByTedance is already active in the game industry with Casual Games and offers games in the Chinese App Stores. 13 of these games were successful until the end of 2019 in Apple’s App Store, it is called. The Games division of ByteDance comprises about 2000 worked.