Sungy set to make big global ac­qui­si­tion

China Daily (Canada) - - ACROSSAMERICA - By AMY HE in New York amyhe@chi­nadai­lyusa.com

Mo­bile In­ter­net-ser­vices com­pany Sungy Mo­bile Ltd on Wed­nes­day said it ac­quired mo­bile ad net­work GetJar Inc for $5.3 mil­lion cash, Sungy’s first in­ter­na­tional ac­qui­si­tion as the com­pany pushes to ex­pand in the mo­bile ap­pli­ca­tion sec­tor. mo­bile users, help­ing mo­bile de­vel­op­ers “max­i­mize mone­ti­za­tion and dis­tri­bu­tion of their apps,” ac­cord­ing to the com­pany. Founded in 2004 in Lithua­nia, GetJar launched an ap­pli­ca­tion store be­fore Ap­ple Inc’s iOS and Google’s An­droid mo­bile op­er­at­ing sys­tems ap­peared on the scene.

Sungy Mo­bile made its de­but in the US mar­ket in Novem­ber last year with an IPO val­ued at $78.5 mil­lion. Shares were orig­i­nally priced at $11.22 and have been trad­ing above $20 since the be­gin­ning of Fe­bru­ary.

“Es­pe­cially af­ter [go­ing pub­lic], I think Sungy needs to grow glob­ally — the China mar­ket is very com­pet­i­tive,” said Jack Jia, ad­vi­sor at GSR Ven­tures. “How­ever, I think the way the US pop­u­la­tion down­loads and finds apps is some­what dif­fer­ent than how China does it, so maybe they’re fol­low­ing more of a China strat­egy, and I don’t know how suc­cess­ful that will be.”

But Jia said that he doesn’t think Sungy knows ei­ther, given how the deal struc­ture is pre­dom­i­nantly per­for­mance­based for the next two years.

“They’re do­ing an ex­per­i­ment. I don’t know what the mar­ket cap for Sungy is, but they can prob­a­bly eas­ily af­ford $5 mil­lion in cash to do this ex­per­i­ment and then see where it goes,” he added.

The com­pany is best known for its GO Launcher EX app, which al­lows users to man­age and cus­tom­ize ap­pli­ca­tions and wid­gets on their An­droid de­vices, serv­ing as “users’ first en­try point to their phones,” ac­cord­ing to the com­pany. It also op­er­ates 3g.cn, a mo­bile In­ter­net por­tal and a mo­bile read­ing ser­vice.

Founded in 2003 by Deng, a for­mer China Tele­com and China Mo­bile en­gi­neer, and Zhang Xiang­dong, Sungy Mo­bile re­ported rev­enue of $37.5 mil­lion the three quar­ters ended Sept 30 — an 88 per­cent year-on-year in­crease. The com­pany de­rives its rev­enue from in-ap­pli­ca­tion pur­chases, paid down­loads, and other sources.

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