Cheetah Mobile To Acquire 35.17% Stake In Beijing OrionStar Technology

(RTTNews) - Cheetah Mobile Inc. (CMCM), a Chinese internet company, announced on Monday that through two of its units, it has acquired 35.17 percent equity interest in Beijing OrionStar Technology Co., Ltd., a robotics company. The share acquisition was from existing shareholders of Beijing OrionStar, including Sheng Fu, the chief executive officer of the Company.

The company previously held a 37.74 percent equity interest in Beijing OrionStar before the completion of this deal. As a result of this transaction, its equity interest in Beijing OrionStar has increased to 72.91 percent.

The internet firm has paid a cash consideration of around $37.6 million to the selling shareholders of Beijing OrionStar, including approximately $1.1 million to Sheng Fu. With this deal, Fu has ceased to be a direct shareholder of Beijing OrionStar.

The company expects substantial synergies with this transaction as it sees Beijing OrionStar's focus on AI technology research and development for seven years to be noteworthy. Cheetah Mobile is hoping to centralize AI resources and further amplify and maximize its own AI advantages, strengthening its competitive position in the AGI era.

In pre-market activity, Cheetah Mobile shares are trading at $2.10, up 11.11% on the New York Stock Exchange.