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KongZhong is latest Chinese NASDAQ-floated company to consider going private

KongZhong is latest Chinese NASDAQ-floated company to consider going private

Following similar moves from iDreamsky, Shanda Games, Perfect World, another western-floated Chinese game publisher is considering going private.

KongZhong (NASDAQ: KZ) has announced it's set up an independent special committee to consider a proposal to acquire the company's shares and remove it from the NASDAQ.

That offer was received on 29 June, but KongZhong says it hasn't "had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company's response to the proposal".

However, given the insular world of Chinese corporate deals, it would a surprise if the company doesn't eventually agree to the move.

This is especially the case as the offer comes from its CEO Leilei Wang, and is backed by IDG-Accel China Growth Fund II, effectively making it a management buyout.

Big brands

KongZhong is best known for publishing Wargaming titles such as World of Tanks, World of Warplanes and World of Warships in China.

It has annual sales in FY2014 of $228 million.

Mobile game account for around 20 percent of revenues, and the company recently spent $16 million buying a 7 percent in rival game publisher Forgame, which is floated on the Hong Kong stock exchange.


Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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