Chinese games publisher KongZhong (NASDAQ:KZ) is to become the latest China firm to delist itself from the US stock exchange to go private.
The online developer had floated on the US Nasdaq in 2004, but is now set to remove itself after agreeing a merger with Linkedsee and Wiseman Limited.
KongZhong will be acquired by an investor consortium for $299 million in an all-cash deal as part of a management buyout of the firm.
The investor consortium includes KongZhong CEO Leilei Wang, Gongqingcheng Wujiang Xingyao Investment Management Partnership, Hexie Chengzhang Phase II, Investment Center and others.
Shares will go for a premium of 17.8% higher than the closing price of the company’s share price on August 24th 2016, the last trading day prior to the firm’s official proposal to go private.
KongZhong has grabbed the exclusive China publishing rights to games such as World of Tanks, World of Warships, World of Warplanes, Guild Wars 2, Auto Club Revolution and Blitzkrieg 3.
In 2015, the publisher reported full year revenues for its online and mobile games business at $179 million.
This was significantly down from FY14 when it generated $228 million in revenue.
Between 2014 and 2015, the company’s mobile game revenues dropped from $35 million to $27 million, while its online games business lost $13 million.
KongZhong follows in the footsteps of companies such as Shanda Games, iDreamsky, Perfect World and more in considering to or making moves to go private.