Cheetah Mobile and Tencent to Expand Strategic Cooperation Agreement
Obtains Increased Annual Fee Caps from Tencent
BEIJING, July 31, 2014 /PRNewswire/ — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah” or the “Company”), a leading mobile Internet company that provides mission critical applications to help make the Internet and mobile experience speedier, simpler, and safer for users worldwide, announced today that it has entered into a supplemental agreement with Shenzhen Tencent Computer Systems Company Limited (“Tencent Shenzhen”), a subsidiary of Tencent Holdings Limited (“Tencent”), which increases the annual caps for fees payable by Tencent and its subsidiaries and their respective associates to Cheetah.
Cheetah and Tencent Shenzhen entered into a Strategic Cooperation Agreement on December 27, 2013, pursuant to which Cheetah would, through both its PC and mobile products and platforms, provide various forms of promotional services to Tencent for their various types of products. The original annual caps of the fees payable by Tencent and its subsidiaries to Cheetah for the two years ending December 31, 2015 were RMB22 million and RMB33 million, respectively.
Under the new supplemental agreement, the annual caps have been increased to RMB100 million and RMB105 million, respectively. The reasons for the revision of the cap include an increase in demand by Tencent for Cheetah’s promotional services and the rapid growth in the number of users of Cheetah’s products. Aside from the aforementioned revision, all existing terms and conditions under the original Strategic Cooperation Agreement remain unchanged.
Mr. Sheng Fu, Chief Executive Officer of Cheetah, stated, “With a strong suite of mission critical applications that we have developed, we have been able to dramatically expand our global user base. In addition, it is also our long-held belief that collaboration is vital to the growth and development of both the Internet and Mobile Internet industry. The increase in the annual fee caps with Tencent highlights Cheetah’s rising market position, both domestically and internationally, and the synergies it creates with key business partners. We remain committed to work with our industry partners to deliver solutions that meet their business goals both now and in the future.”
About Cheetah Mobile Inc.
Cheetah Mobile is a leading mobile Internet company with approximately 362 million monthly active users in March 2014. Its mission critical applications, including Clean Master, CM Security, Battery Doctor and Duba Anti-virus, help make the internet and mobile experience speedier, simpler, and safer for users worldwide. Cheetah Mobile is the second largest internet security software provider in China by monthly active users as of March 2014, according to iUserTracker of iResearch, and the publisher of Clean Master, the #1 mobile app in the Google Play Tools category worldwide by monthly downloads in March 2014, according to App Annie.
The Company also provides various platform products such as Duba.com, Cheetah browser, game centers, and mobile app stores to provide multiple user traffic entry points and global content distribution channels for its business partners.
Tencent uses technology to enrich the lives of Internet users. Every day, hundreds of millions of people communicate, share experiences, consume information, seek entertainment, and shop online through its integrated platforms. Its diversified services include QQ, Weixin and WeChat for communications; Qzone for social networking; QQ Game Platform for online games; QQ.com for information; as well as its eCommerce services. Tencent was founded in Shenzhen in 1998 and went public on the Main Board of the Hong Kong Stock Exchange in 2004. It seeks to evolve with the Internet by investing in innovation, providing a hospitable environment for its partners, and staying close to its users.
SOURCE Cheetah Mobile Inc.