Sky-mobi rallies today on the likelihood of becoming a key distribution partner for Chinese e-retail giant, Alibaba
Rosenblatt Sees Co. has suggested that Sky-mobi Ltd (ADR) (MOBI) could potentially become a key distribution partner of Alibaba due to its prior relationship with UC Web, causing the stock to rally to its highest price in the last two months. UC Web, China’s most popular mobile browser, was acquired by Alibaba earlier this month for an undisclosed amount. Sky-mobi’s surge today follows a 4.7% increase during trading yesterday.
Sky-mobi had only yesterday relinquished a 37.9% stake from China-based mobile game developer, Shanghai Fangcun Information Technology Co. Ltd (Fangcun). The company sold its equity interest to Guangdong Alpha Animation and Culture Co., Ltd.
The sale of its stake brought in about $9.1 million in capital gains to Sky-mobi, and was a strategic move reflecting the success of its angel investment in Fangcun. The company aims to develop such partnerships further to expand its talent pipeline.
Rosenblatt Securities analyst Jun Zhang believes the company’s offline distribution to China Telecom customers will increase as well.
Sky-mobi’s app store, Maopao, is one of the most popular application stores across China. The company, through its partnerships with several smartphone makers, pre-installs its apps on phones so that users gain access to a wide range of mobile apps. The company touts 15 billion app downloads from its store since its inception in 2005. Maopao has a user base of 147 million, with 400,000 users added every day. Sky-mobi’s app store has around 25 million monthly active users (MAU).
Get the Latest news in your inbox, free!