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July 16, 2014 /PRNewswire/ -- Changyou.com Limited ("Changyou" or the "Company") (NASDAQ: CYOU), a leading online game developer and operator in
China, and MoboTap Inc. ("MoboTap"), a
Cayman Islands company that is the mobile technology developer behind the Dolphin Browser, today jointly announced that they have entered into a definitive investment agreement (the "Investment Agreement") pursuant to which Changyou will purchase 51% of the equity interests in MoboTap on a fully-diluted basis, for cash consideration of
US$91 million. In addition, Changyou will provide
US$30 million in funding to MoboTap by purchasing a zero-coupon convertible bond due in five years. Changyou will have the option, exercisable at any time when the bond is outstanding, to convert all or any part of the unpaid principal into shares of MoboTap at a conversion price that would result in Changyou's equity interest in MoboTap increasing to 60% on a fully-diluted basis, measured as of the closing under the Investment Agreement, if the option is exercised in full. The transaction is expected to close in
August 2014, subject to regulatory approvals and customary closing conditions.
MoboTap is the creator of Dolphin Browser, a free mobile browser for Android and iOS devices and is one of the most popular third-party mobile browsers in terms of the total number of downloads in the month of
March 2014 according to
App Annie. Over 100 million users globally have used Dolphin Brower, with the vast majority of its users based in the U.S. and
Mr. Tao Wang, Changyou's chief executive officer, said, "The success of Dolphin Browser clearly reflects the MoboTap team's ability to translate their solid understanding of mobile users' needs and strong technical expertise into successful products and a global business. I am excited to work with MoboTap and we will support Dolphin Browser to grow its market share even further."