China Net Firm Newborn Town Wraps Up Buyout of Mico Social App
Zhang Yushuo
DATE:  Jul 02 2020
/ SOURCE:  Yicai
China Net Firm Newborn Town Wraps Up Buyout of Mico Social App China Net Firm Newborn Town Wraps Up Buyout of Mico Social App

(Yicai Global) July 2 -- Chinese mobile internet firm Newborn Town completed its acquisition of Mico Chat, an online socializing app yesterday, it announced the same day.

Its shares [HKG:9911]closed up 7.73 percent at HKD2.09 (27 US cents) this morning.

Newborn Town was to take an 8.85 percent stake in Mico’s operating company Beijing Mico World Technology for CNY100 million (USD14.16 million) in cash through its NewBornTown Network Technology unit, it announced in April. Together with the 32.11 percent of the shares it previously snapped up in 2016 and 2018, as data on corporate registry site Tianyancha shows, Newborn Town now owns 40.95 percent of Mico, which gives it a majority on the company’s board and thus control.

Newborn Town will collaborate with Mico in traffic, data, technology and market to extend its business from traffic to socializing, said Liu Chunhe, chairman of Newborn Town Technology.

Mico is a global open social platform that uses an "interest-based intelligent social recommendation system," and provides global roaming, sliding matching, real-time translation and other functions, in addition to live entertainment, short videos, games and other entertainment. It has over 100 million users in more than 150 countries.

Newborn Town Technology’s annual revenue from all sources climbed 37.8 percent annually to CNY378 million, according to its last-year financial report. Its adjusted net profit soared 82.3 percent per-year to CNY109 million.

Editor: Ben Armour

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Keywords:   NewBornTown,Mico,Apps,acquisition