Live Platform Inke Purchase Social Application Jimu For $85 Million

According to foreign media reports, China's live broadcasting platform Inke announced that it had bought one hundred percent of the social app Jimu for 85 million dollars.

It is reported that in a document submitted to the Hongkong stock exchange, Inke said that about 80% of Jimu users were born after 1995, from China's first tier and second tier cities. Inke also said that Jimu ranked the top 10 in the social networking applications in 2019, ranking the top 100 in all applications. However, Inke did not disclose how many users Jimu now has.

Inke points out that the overlap between Jimu users and their existing brands is relatively low, which can bring synergy and commercial value in the short term.

Although Jimu lost a net loss of 17 million 700 thousand yuan (US $2 million 570 thousand) last year, as indicated in the document, Inke said it expects the Internet application to bring considerable financial returns soon. Inke said that revenue is expected to come from user membership fees, virtual currency sales and advertising fees.

In addition, it is understood that Inke was established in 2015 and listed on the stock exchange of Hongkong in July 2018. The company's net profit in 2018 was 1 billion 100 million yuan, mainly attributable to an average of 25 million 500 thousand active users who increased by 12.3% over 2017, but this is also far below the 30 million peak in 2016. And the company's revenue in 2018 dropped from RMB 3 billion 940 million to 3 billion 860 million yuan.

The streaming platform recently announced in another document that a net loss of about 60 million yuan is likely in the first half of this year. In addition, Inke said in its 2018 annual report that the mobile interactive entertainment industry has entered a stage of steady growth and is becoming more focused.