BEIJING, Aug. 7, 2015 /PRNewswire/ -- 58.com Inc. (NYSE: WUBA) ("58.com"), China's largest online marketplace serving local merchants and consumers, today announced that it agreed to acquire a 70% equity stake in Leftbrain (NEEQ: 430081), a technology company that is listed on China's National Equities and Exchange and Quotation, for a total consideration of RMB100 million in cash. Leftbrain owns and operates AutoComment (www.xgo.com.cn), a major automotive information website and service platform in China. Subject to customary closing conditions, the transaction is expected to close in the near future.
Founded in Beijing in 2007, AutoComment provides comprehensive and independent interactive content to automobile buyers and owners in China. With its large user base, AutoComment has become a preferred advertising platform for auto manufacturers and dealerships seeking to promote their brands, new model releases and sales promotions. AutoComment also offers auto dealers a fee-based subscription services that allows them to promote their cars to a targeted online audience. AutoComment ranked among the top 5 of China's automotive websites in terms of traffic in 2014, according to iResearch. In addition to its automotive business, Leftbrain also provides mobile phone and consumer electronics information to users through its Cellphone China platform (www.cnmo.com).
Mr. Michael Jinbo Yao, Chairman and CEO of 58.com, commented, "AutoComment is uniquely positioned to directly benefit 58.com as it capitalizes on the massive and rapidly growing business of online automobile marketing. By integrating AutoComment's online services into our platform, 58.com will enhance its overall user experience and provide its expertise and resources to further develop and strengthen Leftbrain's competiveness. We will continue to build a more comprehensive local services ecosystem by incubating internal projects such as 58 Home and investing in complementary jobs, housing, automotive and service platforms such as Ganji, Anjuke, ChinaHR, AutoComment, To8to and Edaijia."
About 58.com Inc.
58.com Inc. (NYSE: WUBA) operates China's largest online marketplace serving local merchants and consumers, as measured by monthly unique visitors on both its www.58.com website and mobile applications. The Company's online marketplace enables local merchants and consumers to connect, share information and conduct business. 58.com's broad, in-depth and high quality local information, combined with its easy-to-use website and mobile applications, has made it a trusted marketplace for consumers. 58.com's strong brand recognition, large and growing user base, merchant network and massive database of local information create a powerful network effect. For more information on 58.com, please visit http://www.58.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of 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," "confident" and similar statements. 58.com may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about 58.com's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: 58.com's goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user base and network of local merchants for its online marketplace; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and 58.com does not undertake any obligation to update such information, except as required under applicable law.
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