Ourpalm, China’s leading listed social web and mobile game developer, has invested $3.1 million AUD (roughly $2.3 million USD) funding in mobile game developer Animoca Brands for a 11.11 percent stake in the Australia-listed company at a premium price of $0.21 per share.
As part of the investment, Steven Hu, co-CEO of Ourpalm, will be appointed as non-executive director of Animoca Brands upon completion of the investment.
The transaction comes after Ourpalm inked partnership with Animoca Brands to publish the later’s hit game Doraemon Gadget Rush in China since March this year.
“The partnership with Ourpalm is expected to greatly enhance Animoca Brands’ ability to increase revenue generation and accelerate penetration into the Chinese market. Ourpalm will work closely with Animoca Brands to grow its market share in China, and widen its game distribution in the region as it leverages Ourpalm’s distribution channels and knowhow,” according to an official statement from the company.
As a spin-off of Appionics Holdings Ltd., commonly known by the consumer name Animoca, Animoca Brands is a Hong Kong-based mobile app developer and publisher aims at global markets. Specialized in making games based on internationally recognized intellectual properties such as Garfield, Ben10, Doraemon, Astro Boy and Ultraman, the company now claimed a combined over 160 million downloads for its 170 portfolio games as of January this year.
Animoca’s current investors include Intel Capital, IDG-Accel and Chinese web-game maker Forgame. The company went public on the Australian Stock Exchange in January this year, raising $2.4 million USD in the initial offering.
As a leading mobile game developer and publisher in China, the Shenzhen-listed Ourpalm is expanding quickly through a series of M&A and investments in mobile gaming companies, include Dovo Entertainment, PlayCrab, ShangGame, Tianma, Blingstorm, Unity Software and H&R Century Pictures.
As China’s gaming industry matures, domestic gaming developers are attaching more importance to intellectual property rights. In addition to creating homegrown IP brands like Kun Fu Arena, Ourpalm is acquiring more IPs through cooperation and acquisition of fellow companies.
Similarly, another leading gaming company CMGE also develops IP games through obtaining authorizations from brand owners and to create new original stories through cooperation with global top game development teams.
image credit: Animoca Brands