HONG KONG--(BUSINESS WIRE)-- UMeWorld Limited (OTCQB: UMEWF) an emerging digital media company based in China, today announces that it has agreed to acquire a 80% stake in mobile game studio, Dingyou (Guangzhou Dingyou Information Technology Co, Ltd.), as it continues to strategically invest in the digital media market.
Dingyou was founded by a proven management team with a successful track record. Prior to founding Dingyou, the founders held managerial positions in a Chinese gaming company that successfully completed a $206M IPO on the Hong Kong Stock Exchange in 2013. Dingyou’s 1st mobile game, “Journey To The West” was launched in December, 2013. Furthermore, Dingyou is expecting to unveil several expansion packs this year and more importantly, to release its second mobile game targeting Chinese and international players, in the summer of 2014.
The sole publishing rights to “Journey To The West” for China, Hong Kong & Taiwan have been awarded to C1WAN, a leading Chinese game publisher. Dingyou retains publishing rights to the rest of the world and is actively negotiating licensing agreements with leading game publishers in the Asia Pacific region. Under the agreement with C1WAN, the game is expected to generate a guaranteed minimum revenue of RMB$10,000,000 (US$1.6 million) to Dingyou in 2014.
Mobile games are the fastest growing category in the global gaming industry, fueled by the rapid expansion of mobile devices and the ever increasing demand for mobility. The global mobile games market is expected to grow 27.3% annually to reach US$23.9 billion by 2016, according to a new report from mobile game marketers AppLift and market research firm Newzoo. The APAC (Asia –Pacific) region is the world’s leading mobile games market, generating 48% of the sector’s global revenue. Within the APAC region, China and Southeast Asia’s mobile game sales are predicted to increase at Compound Annual Growth Rates (CAGR) exceeding 33% through 2016.
Michael Lee, Chief Executive Officer of UMeWorld commented, “UMeWorld continues its robust growth in the digital media space with this strategic acquisition. Going forward, UMeWorld plans to solidify its three digital platforms through the development of B2C e-commerce and the provision of value-added products, services and solutions. In this way, the Company intends to expand its markets, add new customers, increase profits and build shareholder value. The Dingyou acquisition is an important step in this strategy. Dingyou already has contracted revenue of $1.6 million for Journey To The West and our 2014 total revenue expectation for the game is $6.0 million.”
UMeWorld's mission is to facilitate the interaction between people -- "You" and "Me," through its UMeLook and UMFun platforms. UMeLook.com, an online video platform focused on bringing foreign video content to China, is deployed through a sophisticated CDN (Content Delivery Network) with broad coverage throughout Mainland China, Hong Kong & Taiwan. UMeLook.com plans to be a source of foreign video content for the Chinese viewer across any Internet-enabled device in China. UMFun.com is the only cloud based, patent pending adaptive learning educational platform in China. The Platform name UMFun™ in the Chinese language means ‘Full Mark’. It is a cost effective, engaging and fun to use assessment and tutoring platform that can intelligently analyze and adapt to a student’s performance and personalizes the delivery of proprietary educational items according to the student’s learning needs.
Forward Looking Statement
This release may contain projections and other forward-looking statements that involve risks and uncertainties. Forward-looking statements are projections reflecting management's judgment and assumptions based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” “confident” and similar statements. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. Future performance cannot be assured. Readers are referred to the documents filed by UMeWorld with the Securities and Exchange Commission (SEC), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
Potential risks and uncertainties include, but are not limited to: whether our 2014 revenue guidance for Journey To The West can be achieved, whether a digital strategy can be achieved and the risks that there are uncertainties and matters beyond the control of management, and other risks outlined in the Company’s filings with the U.S. Securities and Exchange Commission.
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CEA Capital Advisors
Source: UMeWorld Limited