KongZhong makes a $16.5 million strategic investment in OurPalm

In a typically convoluted move for the current market, Chinese mobile and online gaming company KongZhong (NASDAQ: KONG) has announced it's bought a stake in fellow publisher OurPalm (SHE:300315).

Calling the deal a "strategic investment", KongZhong says it's spent RMB 100 million (around $16.5 million) for the minority interest.

The two companies will now seek to generate co-development, co-marketing and co-distribution synergies through their smartphone and PC game businesses.

In particular, OurPalm will use the investment to further push its cross-platform PC-mobile card and board games.

More M&A

Both companies featured on the PocketGamer.biz top 30 Chinese developers of 2014, with the somewhat troubled KongZhong ranked at #29, while OurPalm was ranked #9.

It had its own M&A spree in 2013, buying developer Playcrab (aka Air&Mud), and majority stakes in Shang Game and Dovo.