GAEA and Oriental Pearl Announce Strategic Cooperation

19 Oct 2017

GAEA and Oriental Pearl Announce Strategic Cooperation

Game provider to forge massive production-distribution chain with media giant.

 

Beijing, February 27, 2017 – Beijing Gaea Interactive Entertainment Co., LTD (NEEQ:430181) (“GAEA” or “the company”) has recently announced a strategic cooperation agreement with Shanghai Oriental Pearl Media Co., Ltd (600637:Shanghai) (“Oriental Pearl”) , China’s first and leading media group in digital marketing, console games, TV shopping, live entertainment, and tourism. The two companies aim to leverage their respective strengths in game production, IP and derivatives, global games market experience, and advertising resources to further explore domestic and global games markets.

 

As a listed subsidiary of Shanghai Media Group (SMG), one of China’s largest media and cultural conglomerates, Oriental Pearl owns most major mass media outlets in China. It also has been given exclusive access to rights for many items in the SMG library.

 

The Oriental Pearl will invest 1.3 billion RMB in GAEA via various methods including capital increase. Once completed, Oriental Pearl will hold 25.50 percent of the company’s total shares.

 

GAEA will share its game development teams, localized operation teams, and an extensive distribution network both in China and abroad. Oriental Pearl will share its expertise and resources which involve both Chinese traditional media and new media. Together, both GAEA and Oriental Pearl will use their broad experience to make even more growth in the gaming industry.

 

Expanding Distribution Networks

Under the agreement, GAEA and Oriental Pearl will form a joint venture to introduce worldwide PC game distribution platforms into the exclusive Chinese market. Meanwhile, the two companies will team up to develop the “Oriental SDK Platform”, backed by Oriental Pearl’s multi-media resources covering broadcasting, IPTV and outdoor advertising to support GAEA’s publishing business.

 

Sharing IP Content

GAEA will enjoy early access to games and IP content from Oriental Pearl; meanwhile, Oriental Pearl reserves the right to make changes to GAEA’s gaming products, in terms of artwork and other relevant IP items. Oriental Pearl also promises at least 3 premium gaming IP’s to be shared with GAEA, along with extra support in acquiring more world-famous game IP.

 

Specializing Game Production

While collaborating in game production, GAEA and Oriental Pearl will specialized in different business practices; GAEA will focus on opportunities with game development and operation, while Oriental Pearl will prioritize new business development in new media and game derivative works.

 

The partnership with Oriental Pearl plays a key role in strengthening GAEA’s active presence and competiveness in the global games market. The alliance also marks the integration of new media with the gaming industry. Thus allowing GAEA to strengthen itself financially, optimize its asset structure, and expand business scale. All of which significantly enhances the company’s ability to manage risk and maintain growth.

 

The strategic cooperation between GAEA and Oriental Pearl does not affect GAEA’s operational independency. The company’s governance remains unchanged.

 

About GAEA:

Beijing Gaea Interactive Entertainment Co., LTD (NEEQ:430181) is a global interactive entertainment company with offices in Beijing, San Francisco, Tokyo, Seoul and Taipei. Since its founding in September 2014, as one of the fastest growing companies in China, GAEA has published 25 games on multiple platforms and has been home to over 70 million players. GAEA not only reinvented classic IP such as The Legend of Sword and Fairy and the Hobbit on mobile screens, but also created its own original mobile MOBA game Ace of Arenas, which has over 30 million players worldwide. More information can be found at www.gaea.com.

 

About Oriental Pearl

Shanghai Oriental Pearl Media Co., Ltd (600637:Shanghai) is a media and entertainment group. Based on a strong media portfolio, the company endeavors to develop an Internet-based media ecosystem incorporating content, platforms, and services, with Internet TV as the breakthrough point. It is dedicated to providing an all-round entertainment service including film and television, gaming, shopping, entertainment and tourism. It aims at building a new-type Internet media group with best in market value, communication, credibility, and influence. As the unified industrial and financial platform for SMG, the company boasts a large-scale content copyright library, with the most diversified categories in China as well as the nation’s largest multichannel video programming distributor (MVPD). The group is also an industry leader in media-related services, such as digital marketing, console games, TV shopping, culture, entertainment, and tourism.