Is 9You Worth $100 Million To The9?posted by MR WAVETHEORY at 10/25/2006 10:58:00 AM
Is this deal possible?
The9 has a market capitalization of $570 million and cash on hand of $83 million in the most recent quarter so it certainly is possible if it is done with cash and stock. It may require some additional share issuances.
What would the deal bring to The9?
According to 9You, 9You is the largest operator of online music games, China’s biggest casual game operator,one of biggest interactive entertainment portal sites in China, which is the first to integrate online game services (MMORPG, massive and medium size casual games, mobile game, etc.), fashional digital entertainment contents, a variety of chatting and community services equipped with Avatar System, wireless value-added services and other premiere services to the Chinese language internet users all over the world. With its wide-coverage for all major types of user needs related with digital entertainment service, the 9you.com represents the latest service style and the newest trend for the digital entertainment provider business in China Market. A series of awards and ranking are obtained by 9you.com in 2005 which include Top 10 Online Game Operator in China, and Top 10 Online Game Developer in China, the Cool Company,Shanghai First-class Service Brand in Information Service Industry, etc.
Who will make money?
The major investors of Nineyou are several leading international venture capital funds, including the Carlyle Group, which is the world’s largest private fund investment group, China Merchant Fortune Ventures, and Dragon Groove Inc. who has the background as international strategic investor.