BEIJING, October 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.
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