Cheetah Mobile and Tencent Continue to Expand Strategic Cooperation Agreement

Dec 30, 2015, 04:30 ET from Cheetah Mobile

BEIJING, Dec. 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 new strategic cooperation agreement with Shenzhen Tencent Computer Systems Company Limited ("Tencent Shenzhen"), a subsidiary of Tencent Holdings Limited ("Tencent"), for the two-year period from January 1, 2016 until December 31, 2017.

Under the terms of the new agreement, Cheetah Mobile and Tencent will continue to provide promotion services for each other. The table below sets out the actual transaction amounts of the promotion services provided by each party to the other party for the year ended December 31, 2014 and the eleven months ended November 30, 2015. The table also sets forth the proposed annual caps respectively under the new agreement for 2016 and 2017.

Historical amount

Proposed annual caps

For the year ended December 31, 2014

For the eleven months ended November 30, 2015

For the year ending December 31,

2016

2017

RMB ' million

Total revenue from Tencent to Cheetah Mobile for provision of promotion services

78.4

272.5

495

587

Fees payable by Cheetah Mobile to Tencent for provision of promotion services

0

42.7

30

45

 

Mr. Sheng Fu, Cheetah Mobile's Chief Executive Officer, stated, "We are delighted to continue our strong partnership with Tencent, one of the world's leading companies in the Internet and mobile technology space. The demand from advertisers for our mobile advertising services on the GDT ad platform continues to grow, which helps us further extend our advertiser reach and monetization capabilities in the domestic market. Furthermore, by leveraging Tencent's tremendous user base and traffic from its various products and platforms, we are able to further grow Cheetah's market share, brand recognition and mobile user base in China, each of which are key components of the Company's global strategy. Looking forward, we will continue to work closely with our partners, to build one of the best mobile advertising platforms for advertisers globally."

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, January 30, 2015, June 30, 2015 and November 5, 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 November 5, 2015, the annual cap with respect to the fees payable by Tencent to Cheetah for the year ending December 31, 2015 was increased to RMB340 million.

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.

The original strategic cooperation agreement will expire on December 31, 2015.

About Cheetah Mobile Inc.

Cheetah Mobile is a leading mobile internet company. The Company aims to provide the best apps for mobile users worldwide, while building a leading global mobile ad platform for advertisers. Cheetah Mobile had approximately 567 million global mobile monthly active users in September 2015. Its mission critical applications, including Clean Master, CM Security, Battery Doctor and Duba Anti-virus, help make the internet and mobile experience speedier, simpler, and safer for users worldwide.

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.

Investor Relations Contact

Cheetah Mobile Inc. Helen Jing Zhu Tel: +86 10 6292 7779 ext. 66085 Email: IR@cmcm.com

ICR, Inc. Vera Tang Tel: +1 (646) 417-5395 Email: IR@cmcm.com

SOURCE Cheetah Mobile