Chinese mobile gaming company Chukong has decided to postpone its US IPO, as Chen Haozhi, CEO and co-founder of the company, disclosed in an internal email yesterday.

The major reason, according to Chen, is the management are not satisfied with the valuation, which is around $540 million. The low valuation is due to the fact that the company is perceived as a mere game developer and distributor who makes profits lower than average game developers/distributors.

Gaming companies are generally trading at comparatively low valuations, for gaming has been regarded by many investors as a hit-driven business.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com