BEIJING, Oct. 15, 2014 /PRNewswire/ -- Cheetah Mobile Inc.
(NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading mobile
Internet company that provides mission critical applications to
help make the Internet and mobile experience speedier, simpler, and
safer for users worldwide, today announced that the Company has
entered into a joint operation framework agreement for games with
Kingsoft Corporation Limited (03888.HK) ("Kingsoft", including its
subsidiaries other than Cheetah Mobile).
Under the terms of the agreement, the two companies will jointly
operate games developed and owned by Kingsoft on Cheetah Mobile's
products and platforms. Kingsoft will provide game content and
relevant updates while Cheetah Mobile will be responsible for the
operation, promotion and distribution of those games. Under the
principles and scope of this framework agreement, Cheetah and
Kingsoft may enter into individual game contracts that must be
carried out on normal commercial terms. Revenues generated from
mobile game users (the "Allocable Revenue") will be shared by the
two companies. Cheetah Mobile agrees to pay a percentage of the
Allocable Revenue to Kingsoft, ranging from 20% to 50%. In
addition, Cheetah Mobile will pay licensing fees to Kingsoft,
ranging from RMB2 million to RMB15
million per game based on the quality of the game, the scope
of licensed area and the licensed mobile platform. The agreement is
set to expire on December 31, 2015.
Furthermore, as part of the agreement, the annual caps payable to
Kingsoft for the two years ending December
31, 2014 and December 31, 2015
will be RMB42 million and
RMB78 million, respectively.
"We are extremely excited to expand our collaboration with
Kingsoft, one of the top game developers in China with vast experience in online game
development," stated Mr.
Sheng Fu, Cheetah Mobile's Chief
Executive Officer. "With our strong suite of mission critical
applications that we have developed, the Cheetah Mobile platform
has accumulated more than 284 million mobile monthly active users
as of June this year. This large and growing user base, coupled
with increased user engagement, enables us to become an
increasingly effective mobile marketing platform for third party
apps and games, while also strengthening our own game publishing
capabilities. As we further expand our game publishing efforts, we
believe that this partnership will greatly benefit both
companies."
About Cheetah Mobile Inc.
Cheetah Mobile is a leading mobile Internet company with approximately 284.3
million mobile monthly active users in June
2014. Its mission critical applications, including Clean
Master, CM Security, Battery Doctor and Duba Anti-virus, help make
the Internet and mobile experience
speedier, simpler, and safer for users worldwide. Cheetah Mobile is
the second largest Internet
security software provider in China by monthly active users as of
June 2014, according to iUserTracker
of iResearch, and the publisher of Clean Master, the #1 mobile app
in the Google Play Tools category worldwide by monthly downloads in
June 2014, according to App Annie.
The Company also provides various platform products such as
Duba.com, Cheetah browser, game centers, and mobile app stores to
provide multiple user traffic entry points and global content
distribution channels for its business partners.
Safe Harbor Statements
This press release contains forward-looking statements. These
statements, including management quotes and business outlook,
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 certain
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. These forward-looking statements include, but are not
limited to, statements about: 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 from 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.
SOURCE Cheetah Mobile Inc.