Phoenix Publishing & Media's subsidiary Phoenix Digital Media plans to acquire a 55% stake in Shanghai Douwan Web Technology Company Limited for CNY277 million.
According to the company's report, Phoenix Publishing & Media will sign transaction agreements with several stakeholders of Douwan, including Shanghai Douwan, Jiangsu Yile, Jiaxing Aoyou, and Feng Jun.
Established on March 8, 2013, Shanghai Douwan currently has registered capital of CNY10 million. Under the agreement, if Shanghai Douwan's audited net profit is lower than CNY56 million in 2013, CNY70 million in 2014, or CNY87.5 million in 2015, the evaluation of the company and the transaction amount will be adjusted, and the existing shareholders will compensate Phoenix Digital Media.
Prior to this, Phoenix Digital Media acquired Shanghai Muhe Network's additional registered capital for CNY310.4 million. With the acquisition, Phoenix Digital Media becomes the majority shareholder of Shanghai Muhe with a 64% stake.