China's Cheetah Mobile buys VC-backed mobile ad network

Upon completion of the cash-plus-stock transaction, MobPartner will become a wholly-owned subsidiary of Cheetah Mobile, according to a statement. Djamel Agaoua will continue to lead MobPartner as CEO and take on the role of senior vice president at the new parent.

Founded in 2009, Paris-based MobPartner has offices in San Francisco, London and Beijing. The company offers performance-based mobile marketing products for advertisers and monetization solutions for publishers. It works with more than 10,000 publishers across 200 countries, reaching about 200 million mobile users.

In 2011, the company raised EUR2.5 million ($3.5 million) from France-based VC funds Alven Capital and Newfund.

The new investment marks Cheetah Mobile's second purchase of a mobile advertising firm in 12 months. Last June, it bought HongKong Zoom Interactive Network Marketing Technology in a deal worth around $30 million.

"By combining MobPartner's worldwide advertiser resources, leading mobile advertising technology, and expertise in the overseas mobile advertising market with Cheetah Mobile's large and growing mobile audience, we will be able to provide better mobile advertising solutions around the globe," said Sheng Fu, Cheetah Moble's CEO, in the statement.

Cheetah was created in 2009 as part of a restructuring of Kingsoft Corporation, which saw its three major subsidiaries - covering enterprise software, security software and gaming - spin out.

The firm raised $168 million via an IPO in the US in May 2014. Tencent Holdings and Matrix Partners hold stakes of 17.8% and 6.2%, respectively. Neither group sold any shares in the offering. Kingsoft remains the majority shareholder with 53.5%.

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• Topics
• Greater China
• Technology
• Exits
• Media
• China
• TMT
• Technology
• M&A
• Exit
• Matrix Partners
• Tencent