NEW
YORK and SHANGHAI,
Sept. 15,
2023 /PRNewswire/ -- MultiMetaVerse Holdings Limited
("MMV"), an animation and entertainment company catering to
China's youth market, announced
today that it has, through its subsidiary in China, entered into an agreement (the
"Agreement") to acquire 100% equity in Shanghai Shengran
Information Technology Co., Ltd. and associated interests
pertaining to all of its consolidated VIEs (collectively, the
"Target Group," or "Taomee"). MMV expects to complete this
transaction by the end of this year. The acquisition will be a
major milestone for MMV in expanding its portfolio and will
significantly enhance its financial performance including its
revenue and cash flow.
Founded in 2007, Taomee is one of China's leading entertainment and media
companies for the younger generations, with established and popular
original brands including "Mole's World", "Seer" and "Flower
Angel". These three iconic brands have flourished in China for more than a decade, becoming a
source of inspiration for the industry and its popularity among the
younger generations has influenced millions of the country's youth.
According to data provided by the Target Group, Taomee has
successfully developed and operated many popular video games, and
secured hundreds of millions of cumulative registered users. In
addition to video games, Taomee has provided its users with
additional entertainment experience such as animation and
merchandise. Taomee has produced a library of over 500 episodes of
animation series and 11 animation movies based on these brands.
"Taomee is a great company whose works have inspired an entire
Chinese generation, and continued to be followed and loved by their
fans as of today." said Yiran Xu,
CEO of MMV. "Their established brands, loyal user base, and
commitment to continuous investment in the brands and various forms
of entertainment content build up the core value of the company and
perfectly align with our strategy for choosing partners. We are
excited to work with the talented team at Taomee and leverage our
brand-centered business model to unlock the full potential of their
brands."
As a pioneer in the Chinese entertainment industry, with its
successful track record and expertise in creating original
animation and development of video games, MMV has established a
brand-centered business model to develop proprietary brands, market
them with original user-generated content (UGC), and provide users
with immersive entertainment experiences through various online and
offline content. This includes developing content for brands that
range from digital collectables to books and comics, as well as
animations and video games. On top of its proprietary brands, MMV
has been searching for acquisitions and partnerships with valuable
IPs like those of Taomee to enhance its brand portfolio and create
greater synergy.
Purchase Price and Financial Performance
The total purchase price is comprised of a fixed consideration
of RMB 543 million, plus a variable
consideration based on certain adjustments but in no event lower
than RMB 17 million, all to be paid
in cash. The purchase price will be financed through a combination
of share issues and bank loans.
During the year ended December 31,
2022, Taomee recorded a total unaudited revenue of
RMB 226 million (US$33.6 million) and adjusted unaudited EBITDA of
RMB 88 million (US$13.1 million). During the last twelve months
ended June 30, 2023, Taomee recorded
a total unaudited revenue of RMB 296
million (US$42.6 million) and
adjusted unaudited EBITDA of RMB 119
million (US$17.1 million).
Advisors
Fangda Partners acted as MMV's transaction legal counsel.
Deloitte acted as the financial and tax advisor to MMV.
About MultiMetaVerse Holdings Limited
MultiMetaVerse Holdings Limited (NASDAQ: MMV) is an animation
and entertainment company dedicated to providing a high-quality,
immersive entertainment experience through original,
user-generated, and professional user-generated content. MMV's
signature Aotu World brand has attracted a broad following among
younger audiences in China. By
leveraging the company's established user base, MMV has built a
diverse product portfolio, including animated content, comic books,
short videos, collectables, stationery, consumer products, and
mobile games across the Aotu World brand.
For more information, please visit
https://www.multi-metaverse.com/
For investor and media inquiries, please contact:
MultiMetaVerse Holdings Limited
Investor Relations
E-mail: ir@multi-metaverse.com
View original
content:https://www.prnewswire.com/news-releases/multimetaverse-holdings-limited-nasdaq-mmv-enters-into-agreement-to-acquire-taomee-301929178.html
SOURCE MultiMetaVerse Holdings Limited