Chinese animation giant MultiMetaVerse Holdings to acquire Taomee Brands

MultiMetaVerse Holdings Limited (MMV), a key player in China‘s animation and youth entertainment sector, announced it will acquire 100% equity in Shanghai Shengran Information Technology Co., Ltd. and its consolidated VIEs, collectively known as Taomee. The cash deal, set to conclude by year-end, consists of a fixed consideration of RMB 543 million and a variable consideration not less than RMB 17 million. The acquisition is aimed to significantly enhance MultiMetaVerse Holdings‘ financial performance, including its revenue and cash flow.

Acquisition Includes Popular Taomee Brands: “Mole’s World”, “Seer”, and “Flower Angel”

Founded in 2007, Taomee is a leading entertainment company targeted at China’s younger generations. With iconic brands like “Mole’s World”, “Seer”, and “Flower Angel”, Taomee has hundreds of millions of cumulative registered users and has produced over 500 episodes of animated series and 11 animated movies. Taomee’s last twelve months ending June 2023 show an unaudited revenue of RMB 296 million (US$42.6 million) and adjusted unaudited EBITDA of RMB 119 million (US$17.1 million).

Quotes and Statements from Company Leadership

Yiran Xu, CEO of MultiMetaVerse Holdings, stated, “Taomee is a great company whose works have inspired an entire Chinese generation, and continued to be followed and loved by their fans as of today. Their established brands, loyal user base, and commitment to continuous investment in the brands and various forms of entertainment content build up the core value of the company and perfectly align with our strategy for choosing partners. We are excited to work with the talented team at Taomee and leverage our brand-centered business model to unlock the full potential of their brands.”

Synergies with MultiMetaVerse Holdings’ Current Operations

MultiMetaVerse Holdings has been a pioneer in China’s entertainment industry, particularly in the creation of original animations and video games. With a brand-centered business model, MultiMetaVerse Holdings plans to integrate Taomee’s valuable IPs into its existing portfolio, thereby creating greater synergies. The acquisition aligns well with MultiMetaVerse Holdings’ ongoing strategy to develop content that ranges from digital collectables to books, comics, animations, and video games.

Transaction Advisors and Financial Details

The acquisition will be financed through a combination of share issues and bank loans. Fangda Partners served as MultiMetaVerse Holdings’ legal counsel for the transaction, while Deloitte acted as the financial and tax advisor.