Cheetah Mobile and Tencent to Expand Strategic Cooperation Agreement
Obtains Increased Annual Fee Caps from Tencent
BEIJING, July 31, 2014
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
Tencentuses 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 inShenzhenin 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.
Contact: Calvin Jiang, +1 (646) 417-5395, IR@cmcm.com
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