Tongbu, Mobile App Distributor by 91 Wireless Founder, Expected to Sell for US$174.5M

Taiwanese game developer XPEC Entertainment today announced that it will acquire Tongbu Technology Ltd., a mainland China mobile app distributor, for RMB1.068 billion (about US$174.5m).

Starting life as an iOS software and content manager, Tongbu has since branched out into Android app downloading services. The company drives turnover through revenue-sharing games on its platform and advertising, amongst other sources.

Tongbu was founded in 2010 by Xiong Jun, the founder of app distributor 91 Wireless which was bought by Baidu last year for US$1.85 billion. Mr. Xiong reportedly sold 91 Wireless to NetDragon in 2008.

Innovation Works, the closely-watched venture capital firm led by Kaifu Lee, and Cai Wensheng, one of the top angel investors in China, are amongst Tongbu’s venture backers.

Their competitors in mainland China include PP Assistant, which has been acquired by UCWeb (now an Alibaba company), and App111, which is now a Baidu subsidiary.

Edited by Mike Cormack