Sina Corporation, the online media company and value-added information service provider for China and for global Chinese communities, announced today that it has entered into a definitive agreement to acquire Davidhill Capital Inc. and its UC instant messaging technology platform.
Launched in 2002, the UC instant messaging service allows users to communicate in real-time over the Internet and mobile phone networks, via text messages, images and voice. UC also provides community services such as chat rooms, online games, alumni clubs, online karaoke and other entertainment services. Based on a highly scalable technology platform, the UC instant messaging service has approximately 80 million registered user accounts and approximately 200,000 peak simultaneous online user accounts.
Sina will pay US$15 million in cash and shares as the first installment and an additional contingent payment of up to US$21 million in cash and shares in the next year based on growth performance levels. The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in the third quarter of 2004.