Cheetah Mobile and Tencent Further Extend Their Cooperation Agreement.
Cheetah Mobile Inc. , a leading mobile Internet company that provides mission critical applications to help make the Internet and mobile experience speedier, simpler, and safer for users worldwide, announced today that it has entered into a supplemental agreement with Shenzhen Tencent Computer Systems Company Limited , a subsidiary of Tencent Holdings Limited, which increases the annual caps for fees payable by Tencent and its subsidiaries and their respective associates to Cheetah.
Cheetah and Tencent Shenzhen entered into a Strategic Cooperation Agreement on December 27, 2013, pursuant to which Cheetah would, through both its PC and mobile products and platforms, provide various forms of promotional services to Tencent for their various types of products. The original annual caps of the fees payable by Tencent and its subsidiaries to Cheetah for the two years ending December 31, 2015 were RMB22 million and RMB33 million, respectively.
Under the new supplemental agreement, the annual caps have been increased to RMB100 million and RMB105 million, respectively. The reasons for the revision of the cap include an increase in demand by Tencent for Cheetah’s promotional services and the rapid growth in the number of users of Cheetah’s products. Aside from the aforementioned revision, all existing terms and conditions under the original Strategic Cooperation Agreement remain unchanged.
Mr. Sheng Fu, Chief Executive Officer of Cheetah, stated, ”With a strong suite of mission critical applications that we have developed, we have been able to dramatically expand our global user base. In addition, it is also our long-held belief that collaboration is vital to the growth and development of both the Internet and Mobile Internet industry. The increase in the annual fee caps with Tencent highlights Cheetah’s rising market position, both domestically and internationally, and the synergies it creates with key business partners. We remain committed to work with our industry partners to deliver solutions that meet their business goals both now and in the future.”