Publicly traded on the New York Stock Exchange, KongZhong (NASDAQ: KZ) has announced a purchase agreement to acquire 8.8M existing ordinary shares of Forgame Holdings Limited . The per ordinary share price of HK$ 14.00 for an estimated equivalent of US $16M. Upon completion of the transaction, KongZhong will hold 7% of the total issued share capital of Forgame.

Through its strategic investment in Forgame, Beijing-based KongZhong will look to merge KongZhong’s Mobile and Internet game businesses with Forgame’s strengths in mobile game development and distribution in both mainland China and overseas. Forgame also has a large portfolio of mobile game intellectual property (IP) licenses, and strong web game distribution through its game publishing platform 91wan that will be further leveraged.

forgame-logo

Listed on the Hong Kong Stock Exchange (Stock Code: 00484.HK, “Forgame”) since October 2013, Forgame currently has $180M in cash, and no debt. A leading developer and publisher in China, the company has launched more than 80 games and has over 207 registered players as of Dec. 31, 2013.

Back in March of this year Forgame itself made a $70M investment in Magic Feature makers of “Tower of Saviors” for a 21% stake in that company.