News

Sky-mobi is the latest Chinese NASDAQ-listed game company to delist

Sky-mobi is the latest Chinese NASDAQ-listed game company to delist

The trend of Chinese games companies floated on the NASDAQ stock exchange delisting is now a stampede.

The latest to announce what is effectively a management buyout by CEO Michael Tao Song is Sky-mobi (NASDAQ:MOBI).

Its board of directors has received a non-binding proposal letter to buy all outstanding shares at $2.10.

That's a premium of 19% to the current share price of $1.76.

The buying group already owns 54.3% of the company shares so it's certain the delisting will occur.

Homeward bound

Other Chinese companies to make similar moves over previous years include:

KongZhong is also going through the process of delisting.

Most companies seem to be making the move because they feel they are being undervalued by US investors; something that also saw PapayaMobile choose to IPO in China rather than the US.

Ironically, though, it appears as if the Chinese government is now making things harder for technology and game companies to raise money.

It leaves fast-growing NetEase (NASDAQ: NTES) as one of the few remaining Chinese companies on the NASDAQ.


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.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies