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NQ Mobile Inc. Announces Sale of a Minority Interest Investment in Its Wholly Owned Subsidiary, FL Mobile
BEIJING and DALLAS, May 30, 2014 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company" (NYSE: NQ), a leading global provider of mobile Internet services, today announced that it has entered into a definitive agreement to sell a minority interest in its wholly owned subsidiary, FL Mobile.
Specifically, NQ Mobile has signed a definitive agreement to sell up to 5.88% of FL Mobile, or up to a total of $25 million, consisting of $15 million to Bison Mobile Limited, a division of Bison Capital Co Ltd and $10 million from other investors, at a pre-money valuation of $400 million dollars or post-money valuation of $425 million. The funds will be used to further expand and enhance the FL Mobile business, brand and content. The investment has a redemption right if FL Mobile does not complete a qualified IPO within 12 months after the investment is completed.
"We have a significant number of exciting and fast-growing businesses and assets that we believe are currently under-valued," said Dr. Henry Lin, co-Founder and co-CEO of NQ Mobile. "We remain focused on furthering our platform strategy on a global basis. We are excited about this investment by Bison Mobile Limited and believe that our FL Mobile platform will drive further value creation as part of our overall platform."
"We are excited about the opportunity to invest in NQ Mobile's wholly owned subsidiary, FL Mobile," said Peixin Xu, founder and managing partner of Bison Mobile Limited, an affiliate of Bison Capital Holding Company Ltd. "We believe that the mobile gaming market is one of the fast growing segments in mobile Internet. FL Mobile has tremendous momentum and is positioned to be a leading player within this sector going forward."
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Very smart move on NQ's part.
It puts a floor on NQ's valuation using only one of its subsidiary. Post money val of $425 is essentially the entirety of NQ's mkt. cap at $7/shr. Now the stock trading at $8, which means $100 mil of net cash, Nationsky, AV/Security, NQ live, Music Radar and other equity investments are worth $60 mil. Lol!
It also points to the fact that NQ are smart investors, they bought FL mobile for next to nothing.
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'admin' pid='44022' datel Wrote:
NQ Mobile Inc. Announces Sale of a Minority Interest Investment in Its Wholly Owned Subsidiary, FL Mobile
BEIJING and DALLAS, May 30, 2014 /PRNewswire/ -- NQ Mobile Inc. ("NQ Mobile" or the "Company" (NYSE: NQ), a leading global provider of mobile Internet services, today announced that it has entered into a definitive agreement to sell a minority interest in its wholly owned subsidiary, FL Mobile.
Specifically, NQ Mobile has signed a definitive agreement to sell up to 5.88% of FL Mobile, or up to a total of $25 million, consisting of $15 million to Bison Mobile Limited, a division of Bison Capital Co Ltd and $10 million from other investors, at a pre-money valuation of $400 million dollars or post-money valuation of $425 million. The funds will be used to further expand and enhance the FL Mobile business, brand and content. The investment has a redemption right if FL Mobile does not complete a qualified IPO within 12 months after the investment is completed.
"We have a significant number of exciting and fast-growing businesses and assets that we believe are currently under-valued," said Dr. Henry Lin, co-Founder and co-CEO of NQ Mobile. "We remain focused on furthering our platform strategy on a global basis. We are excited about this investment by Bison Mobile Limited and believe that our FL Mobile platform will drive further value creation as part of our overall platform."
"We are excited about the opportunity to invest in NQ Mobile's wholly owned subsidiary, FL Mobile," said Peixin Xu, founder and managing partner of Bison Mobile Limited, an affiliate of Bison Capital Holding Company Ltd. "We believe that the mobile gaming market is one of the fast growing segments in mobile Internet. FL Mobile has tremendous momentum and is positioned to be a leading player within this sector going forward."
FL's market valuation is $425 and NQ's is worth less than that at the moment....
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This part looks interesting-
The investment has a redemption right if FL Mobile does not complete a qualified IPO within 12 months after the investment is completed.
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Was going ask about the same thing. Is FL mobile being spinned off?
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Probably not completely, it'll be a spin-out like Sohu-Cyou or Sina-Wb. Though I am curious where will FL IPO. Chukong Technologies recently pulled its IPO after its roadshow, citing valuation below expectation.
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Redemption rights are pretty standard in VC. Rarely are they executed and act as a "put" for the investor. Bottom line is NQ has a current valuation of 425mm for its FL business. Block can't argue with that. Bison got comfortable enough with FLs books to make this investment and we can be sure they did thorough due diligence
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"We are excited about the opportunity to invest in NQ Mobile's wholly owned subsidiary, FL Mobile," said Peixin Xu
another chinese with family name Xu. Would shorter claim that he is a relative of Rong Xu (YiDaTong) and then prove that it's another fraud and money wash investment 
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ridiculous. Xu is a very popular last name in China. You can find millions of people's last name is Xu.
Are they all relatives of Rong Xu :-)
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How much is Nation Sky worth?? A $billion??
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