Cheetah Mobile Considers Going Private Deal, Sources Say
The Beijing-based creator of some of China's most popular mobile games and apps is in talks to go private, according to sources.
Cheetah Mobile Inc. (NYSE: CMCM), the Beijing-based creator of some of China's most popular mobile games and apps, is in active talks to go private, sources knowledgeable with the matter said on Friday.
The stock of Cheetah Mobile spiked as high as 10 percent in early trading today before retreating to $10.15 per American depositary share, up nearly 2 percent after a rumor surfaced that the company was considering a buyout bid for its outstanding shares.
Last week, Cheetah Mobile said its income for the second three months of this year reached $29.7 million, up 23 percent, while earnings per share more than doubled to 19 cents. Its revenue declined 8 percent to $166.8 million, exceeding, however, the top line of the company's guidance for the quarter by 2 percent.
The company has not made an official announcement regarding the possible move.
The market cap of Cheetah Mobile was at $1.43 billion based on Thursday's close of $10.05 per share, according to Thomson Reuters Eikon.
Shares in Cheetah Mobile spiked as much as 10 percent in early trading Friday, then retreated to $10.15 per share, up 16 cents.
(Source: Thomson Reuters Eikon)