BEIJING, Oct. 31, 2017 /PRNewswire/ -- Phoenix New
Media Limited (NYSE: FENG), a leading new media company in
China ("Phoenix New Media",
"ifeng" or the "Company"), today announced that Beijing
Yidianwangju Technology Co., Ltd. ("Yidian"), in which ifeng has
invested in the preferred shares of Particle Inc. ("Particle"), the
holding company of Yidian, received the License for Internet News
Information Service (the "License") from the Cyberspace
Administration of China (the
"CAC") on October 31, 2017.
This is the first License issued by CAC since the new Provisions
for the Administration of Internet News Information Services went
into effect on June 1, 2017. The
License issued to Yidian is applicable to both PC and mobile news
services. In addition to news services, this License also
explicitly authorizes Yidian to operate Yidianhao, Yidian's
we-media platform, in China.
The Company views the License as an official recognition of
Yidian's credibility, which will further differentiate Yidian from
other internet news service providers in China. With the License, the Company expects
Yidian will gain additional competitive advantages in channel
expansion, partnership establishment, content operation, and
we-media development.
Yidian is an affiliated consolidated entity of Particle and owns
Yidian Zixun, a rapidly-growing personalized news and life-style
information application in China,
which allows users to efficiently define and explore individualized
content over mobile devices. The Company currently owns certain
preferred shares of Particle which represented approximately 41.8%
of the total outstanding shares of Particle on an as-if converted
basis.
Yidian's receipt of the License fulfills a prerequisite for
equity investment in Particle from Long De Cheng Zhang Culture
Communication (Tianjin) Co., Ltd.
("Long De"), a company affiliated
with Beijing Culture Investment Development Group Co., Ltd.
Pursuant to the agreement among the Company, Particle and
Long De, as soon as possible after
Yidian's receipt of the License, the Company will assign to
Long De or its designated affiliate
the Company's rights under a term loan granted to Particle in
August 2016 with a principal amount
of US$14.8 million (the "Loan"), and
Long De or its affiliate will have
the right to convert all or a portion of the Loan into Series D1
preferred shares of Particle. Long
De or its affiliate will pay the Company approximately
US$17.0 million for the Loan
assignment. Pursuant to the agreement, Long
De or its affiliate will also subscribe for Series E
preferred shares and warrants of Particle that represent 7.69% of
the total shares outstanding of Particle on an as-if converted
basis for an aggregate price of approximately US$73.5million (assuming full exercise of the
warrants). Upon completion of the conversion of the Loan,
subscription for the Series E preferred shares and exercise of the
warrants by Long De or its affiliate
as defined in the agreement (the "Series E Transactions"),
Long De will own approximately 10.0%
of the total shares outstanding of Particle on an as-if converted
basis for an aggregate price of approximately US$90.4 million; and the Company's equity
interest in Particle is expected to decrease to 37.6% of the total
shares outstanding of Particle on an as-if converted basis.
The Company expects that after completion of the Series E
Transactions, Yidian will be able to accelerate its progress in
talent acquisition, brand building, and user experience
optimization, thus improving its financial and operating
performance and generating incremental value for all of its
stakeholders.
Mr. Shuang Liu, CEO of Phoenix
New Media, stated, "As the single largest preferred shares holder
of Yidian, we are proud to know that Yidian has been awarded the
License. It is a major milestone in Yidian's development. We expect
it will further boost the synergy between ifeng and Yidian in
content development, advertising sales and algorithm improvement.
Going forward, we believe the License should also open up
additional opportunities for Yidian to strengthen strategic
partnerships with content providers and handset manufactures."
About Phoenix New Media Limited
Phoenix New Media Limited (NYSE: FENG) is a leading new media
company providing premium content on an integrated Internet
platform, including PC and mobile, in China. Having originated from a leading global
Chinese language TV network based in Hong
Kong, Phoenix TV, the Company enables consumers to access
professional news and other quality information and share
user-generated content on the Internet through their PCs and mobile
devices. Phoenix New Media's platform includes its PC channel,
consisting of ifeng.com website, which comprises interest-based
verticals and interactive services; its mobile channel, consisting
of mobile news applications, mobile video application, digital
reading application, fashion application and mobile Internet
website; and its operations with the telecom operators that
provides mobile value-added services.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are 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" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Phoenix New Media's strategic and
operational plans, contain forward-looking statements. Phoenix New
Media may also make written or oral forward-looking statements in
its periodic reports to the U.S. Securities and Exchange Commission
("SEC") on Forms 20-F and 6-K, 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. Statements that are not historical facts, including
statements about Phoenix New Media's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the Company's goals and strategies; the Company's future
business development, financial condition and results of
operations; the expected growth of the online and mobile
advertising, online video and mobile paid service markets in
China; the Company's reliance on
online advertising and MVAS for the majority of its total revenues;
the Company's expectations regarding demand for and market
acceptance of its services; the Company's expectations regarding
the retention and strengthening of its relationships with
advertisers, partners and customers; fluctuations in the Company's
quarterly operating results; the Company's plans to enhance its
user experience, infrastructure and service offerings; the
Company's reliance on mobile operators in China to provide most of its MVAS; changes by
mobile operators in China to their
policies for MVAS; competition in its industry in China; and relevant government policies and
regulations relating to the Company. Further information regarding
these and other risks is included in the Company's filings with the
SEC, including its registration statement on Form F-1, as amended,
and its annual report on Form 20-F. All information provided in
this press release is as of the date of this press release, and
Phoenix New Media does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries please contact:
Phoenix New Media Limited
Nicole Shan
Email: investorrelations@ifeng.com
ICR, Inc.
Rose Zu
Tel: +1 (646) 405-4883
Email: investorrelations@ifeng.com
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SOURCE Phoenix New Media Limited