BEIJING, June 30, 2015 /PRNewswire/ -- Cheetah Mobile
Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading
mobile internet company that provides mission critical applications
to help make the internet and mobile experience speedier, simpler,
and safer for users worldwide, today announced it has entered into
a supplemental agreement with Shenzhen Tencent Computer Systems Company Limited
("Tencent Shenzhen"), a subsidiary of
Tencent Holdings Limited
("Tencent"), which increases the
annual cap for promotional services fees payable by Tencent and its subsidiaries and associates to
Cheetah Mobile for the year ending 31
December 2015.
Under the new supplemental agreement, the annual cap for the
year ending 31 December 2015 have
been increased from RMB105 million to
RMB250 million. Noting increased
demand from Tencent for the Company's
mobile advertising services, both companies agreed to raise the
annual fee cap. Aside from the aforementioned revision, all
existing terms and conditions under the original Strategic
Cooperation Agreement (as described in "Background Information"
below) remain unchanged.
For the first four months of 2015, the historical transaction
amount for the promotion services fees payable by Tencent to Cheetah Mobile was RMB64.3 million. The Company has confirmed that,
up to the date of this announcement, the transaction amount for the
promotion services fees payable by Tencent to Cheetah Mobile has not exceeded the
annual cap for the year ending 31 December
2015, i.e., RMB105
million.
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "We are pleased to deepen our
strategic cooperation with Tencent
and see the growing demand for our mobile advertising services from
Tencent as well as advertisers on
GuangDianTong, Tencent's performance-based advertising system. We
are confident that our large and growing global user base, with
increasing user engagement, will further facilitate our progress
towards becoming the leading global mobile advertising platform.
Looking ahead, we remain committed to working with our global
partners, delivering the best solutions available to meet their
mobile advertising needs."
Background Information
On December 27, 2013, Cheetah
Mobile and Tencent Shenzhen initially
entered into a Strategic Cooperation Agreement, which was amended
on July 31, 2014, and further amended
on January 30, 2015. Pursuant to the
agreement, Cheetah Mobile would, through its PC and mobile products
and platforms (including licensed products and platforms), provide
various forms of promotional services to Tencent for various types of products. Under the
amendment on July 31, 2014, the
annual caps with respect to the fees payable by Tencent to Cheetah for the years ending 2014 and
2015 were increased to RMB100 million
and RMB 105 million,
respectively.
Additionally, on January 30, 2015,
Cheetah Mobile and Tencent expanded
scope of strategic cooperation agreement, pursuant to which
Tencent agrees to provide promotional
services to Cheetah Mobile, subject to an annual cap of
RMB100 million for the year ended
December 31, 2015.
About Cheetah Mobile Inc.
Cheetah Mobile is a global mobile Internet company. The Company
provides the best apps for mobile users worldwide, while building a
leading global mobile ad platform for advertisers. As of
March 2015, Cheetah Mobile had
reached approximately 443.6 million mobile monthly active
users. Its mission-critical applications, including Clean
Master, CM Security, Battery Doctor and Photo Grid, help make the
Internet and mobile experiences speedier, simpler, and safer for
users worldwide. Clean Master is the #1 app in the Google Play
Tools category worldwide by monthly downloads as of March 2015, according to App Annie.
The Company also provides various platform products such as
Duba.com, Cheetah Browser, game centers, and mobile app stores to
provide multiple user traffic entry points and global content
distribution channels for its business partners.
Safe Harbor Statements
This press release contains forward-looking statements.
These statements, including management quotes and business outlook,
constitute forward-looking statements under the U.S. Private
Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Such
statements involve certain risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in the forward-looking statements. These forward-looking
statements include, but are not limited to, statements about:
Cheetah Mobile's growth strategies; Cheetah Mobile's ability to
retain and increase its user base and expand its product and
service offerings; Cheetah Mobile's ability to monetize its
platform; Cheetah Mobile's future business development, financial
condition and results of operations; competition from companies in
a number of industries including internet companies that provide
online marketing services and internet value-added services;
expected changes in Cheetah Mobile's revenues and certain cost or
expense items; and general economic and business condition globally
and in China. Further information
regarding these and other risks is included in Cheetah Mobile's
filings with the U.S. Securities and Exchange Commission. Cheetah
Mobile does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under applicable law.
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SOURCE Cheetah Mobile, Inc.