Chukong Holding IPO

[js253]

Another solid comparable to value NQ.

Chukong is the premier mobile gaming company in China, with tier one VC and bankers involved, a much better comparable to use for NQ's FL Mobile division than CMGE(low volume and did not go thru a formal IPO process). Its latest F1 is available here

2014 Q1 revenue came in at $37.4 mil., about twice that of FL, with very little advertising and mostly gaming rev. The one drawback is that 55% of its revenue comes from one game, but that # is on the decline. The F1 does not yet say expected price range and share offered/share count. I'm guessing somewhere around $1b mkt. cap post IPO. It's hard to say exactly how to value FL using Chukong's #, since NQ doesn't breakout FL's P&L and the two companies aren't identical. That said, i think it's pretty safe to say that if Chukong is worth X, then FL shoud be somwhere between 0.3-0.35 X.

Chukong hasn't set an IPO date yet, likely mid to late May, assuming the mkt. doesn't go to shit before then.

[Fundy_]

Glu Mobile seems to be a very solid bet in regards to Chinese gaming companies, but I'll take a look at this as well.

[js253]

I'm not recommending ppl to invest in Chukong's IPO. I posted it only as a reference to how to value one piece of NQ's business.

Never looked at Gluu. Based on Google Finance's description, it's primarily a US/Western-centric mobile gaming company that designs and operates its own game, not exactly comparable to what FL or Chukong is doing, particularly FL as a mobile gaming publisher(i.e. very little in-house R&D). For the purpose of having a better understanding of FL, Chukong's upcoming IPO would be a better apple to apple comparison than Gluu.

[LynetteMumme]

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