BEIJING, May 26, 2017 /PRNewswire/ -- Cheetah Mobile Inc.
(NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile
internet company that aims to provide leading apps for mobile users
worldwide and connect users with personalized content on the mobile
platform, today announced that Beijing Kingsoft Internet Security
Software Co., Ltd. ("Beijing Security"), a wholly-owned subsidiary
of the Company, has entered into a capital injection agreement
("Capital Injection Agreement") with Beijing OrionStar Technology
Co., Ltd. ( "Beijing OrionStar"), an artificial intelligence
company incorporated in China and
controlled by Mr. Sheng Fu, the
chief executive officer and director of Cheetah Mobile, Pingtan
Dingfu Investment Management Co., Ltd. ("Pingtan Dingfu"), Beijing
Kangyuan Heart Management Consulting Center Limited Partnership
("Kangyuan Heart"), and the existing shareholders of Beijing
OrionStar.
Pursuant to the Capital Injection Agreement, Beijing Security,
Pingtan Dingfu, and Kangyuan Heart agreed to subscribe to newly
issued equity interest in Beijing OrionStar for a consideration of
approximately US$40 million,
US$0.4 million, and US$0.35 million, respectively, payable in
cash. Upon completion of the transaction, Beijing Security is
expected to hold 29.55% of equity interest in Beijing
OrionStar.
Within two years after the completion of the transaction,
Beijing Security is entitled to a warrant to subscribe to newly
issued equity interest in Beijing OrionStar in the future with an
equivalent value of up to US$62
million at the same unit subscription price as the current
investment, subject to certain conditions and adjustments as
provided in the Capital Injection Agreement. If the warrant is
exercised in full, Beijing Security is expected to hold 51.68% of
equity interest in Beijing OrionStar, assuming that there will be
no other change in the shareholding structure of Beijing
OrionStar.
This transaction is subject to customary and other closing
conditions, including approval by the independent shareholders of
Kingsoft Corporation Limited, Cheetah Mobile's controlling
shareholder, at a general meeting.
About Cheetah Mobile Inc.
Cheetah Mobile is a leading mobile internet company. It
aims to provide leading apps for mobile users worldwide and connect
users with personalized content on the mobile platform.
Cheetah Mobile's products, including its popular utility
applications Clean Master, CM Security and Battery Doctor, help
make users' mobile internet experience smarter, speedier, and
safer. The Company has attracted more than 600 million global
mobile monthly active users, of which approximately 80% are located
outside of China. Leveraging the success of its utility
applications, Cheetah Mobile has launched its line of mobile
content-driven applications, including News Republic and
Live.me.
Cheetah Mobile provides its advertising customers, which include
direct advertisers and mobile advertising networks through which
advertisers place their advertisements, with direct access to
highly targeted mobile users and global promotional channels, which
are capable of delivering targeted content to hundreds of millions
of users.
Safe Harbor Statement
This press release contains forward-looking
statements. These statements constitute forward-looking
statements under the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified
by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
Such statements involve inherent risks and uncertainties. A
number of factors could cause actual results to differ materially
from those contained in the forward-looking statements, including
but are not limited to the following: Cheetah Mobile's growth
strategies; Cheetah Mobile's ability to retain and increase its
user base and expand its product and service offerings; Cheetah
Mobile's ability to monetize its platform; Cheetah Mobile's future
business development, financial condition and results of
operations; competition with companies in a number of industries
including internet companies that provide online marketing services
and internet value-added services; expected changes in Cheetah
Mobile's revenues and certain cost or expense items; and general
economic and business condition globally and in China. Further information regarding these and
other risks is included in Cheetah Mobile's filings with the U.S.
Securities and Exchange Commission. Cheetah Mobile does not
undertake any obligation to update any forward-looking statement as
a result of new information, future events or otherwise, except as
required under applicable law.
Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: IR@cmcm.com
ICR, Inc.
Jessie Fan
Tel: +1 (646) 417-5395
Email: IR@cmcm.com
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SOURCE Cheetah Mobile