BEIJING, Dec. 19, 2018 /PRNewswire/ -- Phoenix New Media
Limited ("Phoenix New Media", "ifeng" or the "Company") (NYSE:
FENG), a leading new media company in China, today announced that it has entered
into an agreement with Telling Telecommunication Co., Ltd
("Telling Telecom"), the sole shareholder of Beijing Yitian Xindong
Network Technology Co., Ltd. ("Yitian Xindong"), to acquire 25.5%
equity interests in Yitian Xindong for an aggregate purchase price
of RMB144 million, subject to certain
price adjustment mechanisms based on Yitian Xindong's
operating and financial performance in 2019 and 2020 (the
"Acquisition"). Before the Acquisition, Yitian Xindong is a wholly
owned subsidiary of Telling Telecom, which is listed on the main
board of the Shenzhen Stock Exchange (stock code: 000829). Yitian
Xindong owns the mobile application Tadu, a leading online reading
application in China that
currently has more than one million daily active users.
Concurrently, Telling Telecom also agreed to transfer another
25.5% equity interests in Yitian Xindong to Shenzhen Bingruixin
Technology Co., Ltd. ("Bingruixin"). Bingruixin will grant an
option that will allow the Company to acquire the 25.5% equity
interests from Bingruixin for RMB144
million, subject to certain price adjustment mechanisms
based on Yitian Xindong's operating and financial performance in
2019 and 2020 (the "Call Option"). Before the Company exercises
such option, Bingruixin agreed to entrust voting rights with
respect to the 25.5% equity interests in Yitian Xindong to the
Company (the "Voting Rights Entrustment") prior to March 15, 2019. Because of the Voting Rights
Entrustment, the Company expects to be able to consolidate Yitian
Xindong upon completion of the Acquisition. However, if the Company
explicitly renounces the Call Option or does not exercise the Call
Option before March 15, 2019, both
the Call Option and the Voting Rights Entrustment will
automatically expire.
"We are very excited to make a strategic investment in Yitian
Xindong," said Mr. Shuang Liu, Chief
Executive Officer of ifeng. "We see great synergies between FanYue
and Tadu will enable us to further expand our user base and
strengthen our capabilities in IP developments. These are two very
complementing products. Our cooperation with Yitian Xindong
will allow us to accelerate the progress of our content strategy
and optimize our revenue structure."
About Phoenix New Media Limited
Phoenix New Media Limited (NYSE: FENG) is a leading new media
company providing premium content on an integrated platform across
Internet, mobile and TV channels in China. Having originated from a leading global
Chinese language TV network based in Hong
Kong, Phoenix TV, the Company enables consumers to access
professional news and other quality information and share
user-generated content on the Internet and through their mobile
devices. Phoenix New Media's platform includes its ifeng.com
channel, consisting of its ifeng.com website and web-based game
platform, its video channel, comprised of its dedicated video
vertical and mobile video services, and its mobile channel,
including its mobile Internet website, mobile applications and
mobile value-added services.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of 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. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward-looking statements. Phoenix New
Media may also make written or oral forward-looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20-F and 6-K, in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about Phoenix New Media's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the Company's goals and strategies; the Company's future
business development, financial condition and results of
operations; the expected growth of the online and mobile
advertising, online video and mobile paid service markets in
China; the Company's reliance on
online advertising and MVAS for the majority of its total revenues;
the Company's expectations regarding demand for and market
acceptance of its services; the Company's expectations regarding
the retention and strengthening of its relationships with
advertisers, partners and customers; fluctuations in the Company's
quarterly operating results; the Company's plans to enhance its
user experience, infrastructure and service offerings; the
Company's reliance on mobile operators in China to provide most of its MVAS; changes by
mobile operators in China to their
policies for MVAS; competition in its industry in China; and relevant government policies and
regulations relating to the Company. Further information regarding
these and other risks is included in the Company's filings with the
SEC, including its registration statement on Form F-1, as amended,
and its annual report on Form 20-F. All information provided in
this press release is as of the date of this press release, and
Phoenix New Media does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
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SOURCE Phoenix New Media Limited