PVG Venture Capital buys 3% of CMGE

The PIPE transaction saw Taiwan semiconductor company MediaTek simultaneously purchase 4.7% of the new share capital issued on the Hong Kong Stock Exchange.

CGME was established in January 2011 through the merger by parent company VODone of three of its subsidiaries, Dragon Joyce Group, OWX HK and 3GUU Group. Following the merger, CGME became the largest mobile game developer in China in terms of revenue, net profit, handset coverage and number of paid subscribers.

China's mobile games sector is expected to continue to grow substantially as the number of mobile internet users is increasing on a yearly basis. According to market research cited by VODone, the domestic market for mobile games reached RMB4.5 billion last year.

Since August 2011, VODone has been publicly making plans to spin off CMGE into a separate entity. This move is designed to allow investors to participate in the future development of both VODone and CMGE and have the flexibility to invest in both or either of the groups.

Last year, another Chinese mobile games developer, Happy Elements, received $30 million in Series B funding from Legend Capital and DCM. The company plans to launch at least eight new games this year.

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• Topics
• PIPEs
• Technology
• Greater China
• PIPE
• Technology
• China
• Legend Capital