Jenny Chan 陳詠欣
Jun 9, 2015

Bluefocus spends US$359 million on mobile ad platforms Madhouse and Domob

SHANGHAI - Bluefocus Communication Group will be acquiring smartphone ad platform Domob for US$288.1 million and investing US$71.2 million for a 54.77 per cent stake in mobile ad platform Madhouse.

BlueFocus CEO Oscar Zhao
BlueFocus CEO Oscar Zhao

The Domob acquisition is in two parts: Domob Limited (incorporated in Cayman) will be acquired wholly for US$178.9 million while Domob Beijing will sell a 95 per cent stake for US$109.20 million.

According to an official acquisition document (in Chinese), Domob's acquisition is in line with BlueFocus' strategic transition to a digital marketing and communications group. After completion of the acquisition, Bluefocus will "be ahead of the field in mobile marketing" due to Domob's technical advantages and connections to high-quality mobile media inventory in China.

Meanwhile, Madhouse will be removing its Variable Interest Entity (VIE) structure so as to establish a more flexible corporate structure, but retain its operating independency.

With the BlueFocus investment, the company will continue to improve its mobile ad technology and programmatic buying services as well as accelerate international expansion over the next 10 years. Founder Joshua Maa will continue to run the company as the chairman of the board and CEO.

 

Source:
Campaign Asia

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