In an interesting move, Chinese Android OEM Xiaomi is getting into games.
Through its Xiaomi Ventures unit, it's buying $20 million-worth of shares in online/mobile gaming company Westhouse from its parent Kingsoft (HKG:3888).
This investment will see it get a 4.7 percent stake, with Kingsoft owning a 76.5 percent thanks to the issuing of a further $5 million-worth of shares from Westhouse.
Mind the gap
The point of the deal, however, is that the two will "explore the opportunity of cooperation in the area of mobile games, whereby Xiaomi would be a strategic distribution partner".
Westhouse is best known for its PC title Jian Wang 3, which would be an obvious candidate for a mobile version.
Another reason the deal is likely to have occured is that Xiaomi founder Lei Jun was previously Kingsoft CEO. Xiaomi also bought a 10 percent in Kingsoft's cloud computing division in 2012.
[source: Kingsoft IR]