(Yicai Global) July 18 -- Chinese online video streaming platform iQiyi has acquired game maker Skymoons and Skymoons Digital Entertainment in a deal worth as much as CNY2 billion (USD298 million), further expanding its business into the mobile gaming market.
IQiyi bought the Chengdu-based companies for a fixed payment of CNY1.27 billion, with a possible addition of CNY730 million if Skymoons meets agreed performance targets in the next two years, Chinese news outlet 36Kr reported.
Majority owned by search giant Baidu, iQiyi is exploring diversification that fully exploits and monetizes its own content, founder and Chief Executive Gong Yu said. Beijing-based iQiyi believes that Skymoons will help drive business growth and expand its entertainment offering, he added.
IQiyi has so far released mobile games that are inspired by television series and movies, with some of the game titles including The Journey of Flower, The Mystic Nine, Princess Agents and Nirvana in Fire II. The company bought filmmaker Nuomi Pictures and cinema brand Yuker earlier this year.
Skymoons develops mobile games and has cooperation agreements with a number of international IP giants.
IQiyi was the largest Chinese video streaming firm to go public when it listed in New York in March. The USD2.5 billion raised in its initial offering are being partly spent on content aimed at luring more users amid stiff competition with Tencent Video and Alibaba's Youku Tudou platform.
Editor: Emmi Laine