BEIJING, March 1, 2019 /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 exercised
the option to acquire 25.5% equity interests in Beijing Yitian
Xindong Network Technology Co., Ltd. ("Yitian Xindong") from
Shenzhen Bingruixin Technology Co., Ltd. ("Bingruixin") pursuant to
the agreements with Bingruixin, Telling Telecommunication Co.,
Ltd and Yitian Xindong entered in December
2018.
After satisfaction of certain closing conditions for the option
exercise, the Company will be required to pay a preliminary
purchase price of RMB144.1 million to
Bingruixin, subject to adjustment mechanisms based on Yitian
Xindong's operating and financial performance in 2019 and 2020. If
Yitian Xindong fails to satisfy these performance requirements, the
final purchase price may be reduced to RMB58.8 million and Bingruixin will be required
to refund the Company the difference between the final purchase
price and the preliminary purchase price paid by the Company.
As previously announced, the Company acquired 25.5% equity
interests in Yitian Xindong in December
2018 and started to consolidate Yitian Xindong as a result
of certain voting rights entrustment arrangement with Bingruixin.
The Company expects to continue to consolidate Yitian Xindong after
closing of the option exercise. Yitian Xindong owns the mobile
application Tadu, a leading online reading application in
China that currently has more than
one million daily active users.
"The strategic investment in Tadu is about unleashing Fanyue's
full potential, building upon our collective synergies," said Mr.
Shuang Liu, Chief Executive Officer
of Phoenix New Media. "We believe that will enable us to further
expand our user base, differentiate our content, strengthen our IP
developments and further optimize our revenue stream."
The Company understands that its parent
company, Phoenix Media Investment (Holdings) Limited (HK: 2008), or
Phoenix TV, a company listed on Hong Kong Stock Exchange, today
announced this transaction in a submission (the "announcement") to
the Hong Kong Stock Exchange in compliance with relevant disclosure
requirements. The announcement contains further details with
respect to this transaction. A copy of the announcement has been
included as Exhibit 99.2 to this current report on Form 6-K for
reference.
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.
For investor and media inquiries
please contact:
Phoenix New Media Limited
Qing Liu
Email: investorrelations@ifeng.com
ICR, Inc.
Jack Wang
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
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SOURCE Phoenix New Media Limited