For the Record: Wargaming Acquires More KongZhong Shares
Source: http://top.rbc.ru/technology_and_med...b20fd7cfb35ff4 Thanks to Maiorboltach for posting this in RU LJ community. Wargaming excercised the option of buying 1 million KongZhong ADR’s (American Depositary Receipts) worth 5,94 million USD. For those who do not know, KongZhong is a Chinese company, exclusively producing World of Tanks for the Chinese market – according to Chinese law, you need a Chinese company to do that and so Wargaming partnered with KongZhong. This partnership was by the way the main (perhaps sole) reason for the introduction of the Chinese tank line, which is unsurprisingly popular over there. Currently, Wargaming controls 4 million ADR’s, which equals to 160 million KongZhong shares. This transaction increased WG’s share of Kongzhong from 6,7 to 8,6 percent. The earlier 6,7 percent was purchased in 2012 (when WG gave KongZhong the exclusive rights for Chinese market) for an estimated sum of 17,8 million USD. Wargaming has the option to buy the 1 more million ADR’s until 2018, which would increase its share in KongZhong to 10,1 percent. Wargaming of course has the right to recieve dividends from the shares they bought, which in October 2014 was 0,88 USD per ADR. For 4 million ADR’s, that makes 3,5 million USD. According to the article, Wargaming was looking for a partner in China for quite some time (back then, Chinese gaming market went through some sort of crisis). The main Wargaming goal was to diversify its business and KongZhong, WG’s partner, was one of the largest Chinese game developers, founded in 2002 by Nick Young, a venture investor. The company’s estimated worth currently is cca 298 million USD.