Oct 15, 2014
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.
For further information: Cheetah Mobile Inc., Helen Jing Zhu, +86 10 6292 7779, IR@cmcm.com; or ICR, Inc., Calvin Jiang, +1 (646) 417-5395, IR@cmcm.com