Cheer Holding Announces Plan to Acquire 60% Equity Stake in ZKZG, Accelerating AI Development
Rhea-AI Summary
Cheer Holding (NASDAQ: CHR) has entered into a non-binding investment framework agreement to acquire a 60% equity stake in Beijing Zhong Ke Zhi Guo Technology Co., (ZKZG), a provider of synthetic data utilizing generative AI and simulation technology. The acquisition will be executed through a combination of share issuance and cash payment, with specific transaction details to be disclosed upon signing definitive agreements.
ZKZG is recognized as a premier provider of synthetic data, integrating generative AI with simulation technologies. The company's team consists of highly qualified professionals from top-tier universities, bringing significant academic expertise to the field. ZKZG holds a substantial advantage in the application and commercialization of AI technologies.
This strategic acquisition demonstrates Cheer Holding's commitment to strengthening its presence in the artificial intelligence value chain and accelerating its growth in the AI sector, aiming to create transformative opportunities for the Company.
Positive
- Acquisition of 60% equity stake in ZKZG strengthens CHR's position in the AI value chain
- ZKZG brings expertise in synthetic data generation using AI and simulation technologies
- ZKZG's team includes highly qualified professionals from top universities
- Strategic move accelerates CHR's growth in the AI sector
Negative
- Transaction details including valuation not yet disclosed
- Acquisition subject to due diligence, audit, and evaluation completion
- Framework agreement is non-binding
- Potential share dilution for current shareholders due to share issuance component
News Market Reaction
On the day this news was published, CHR declined 12.06%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BEIJING, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Cheer Holding, Inc. (NASDAQ: CHR) (“Cheer Holding” or the “Company”), a leading provider of advanced mobile internet infrastructure and platform services, today announced it has entered into a non-binding investment framework agreement (the “Framework Agreement”) with all the shareholders of Beijing Zhong Ke Zhi Guo Technology Co., Ltd. (“ZKZG”), a provider of synthetic data utilizing generative AI and simulation technology. Pursuant to the Framework Agreement, Cheer Holding intends to acquire a
Details regarding the overall valuation and specific terms of the transaction will be disclosed upon the signing of definitive agreements, following satisfactory completion of due diligence, audit, and evaluation of ZKZG.
ZKZG stands out as a premier provider of synthetic data, effectively integrating generative AI with simulation technologies. Its distinguished team comprises highly qualified professionals, many of whom are graduates from top-tier universities both domestically and internationally, bringing significant academic expertise to the field. This team exemplifies diverse skill sets and an innovative spirit, driving advancements in intelligent product development and expanding application scenarios through the synergy of AI and hardware technology. ZKZG holds a substantial advantage in the application and commercialization of artificial intelligence technologies.
This proposed acquisition reflects Cheer Holding's commitment to strengthening its presence in the artificial intelligence value chain and accelerating its growth in the AI sector, with the objective of creating transformative opportunities for the Company.
About Cheer Holding, Inc.
As a preeminent provider of next-generation mobile internet infrastructure and platform services in China, Cheer Holding is dedicated to building a digital ecosystem that integrates “platforms, applications, technology, and industry” into a cohesive digital eco-system, thereby creating a new, open business environment for web3.0 that leverages AI technology. The Company is developing a 5G+VR+AR+AI shared universe space that builds on cutting-edge technologies including blockchain, cloud computing, extended reality, and digital twin.
Cheer Holding’s portfolio includes a wide range of products and services, such as CHEERS Telepathy, CHEERS Video, CHEERS e-Mall, CHEERS Open Data, CheerReal, CheerCar, CheerChat, Polaris Intelligent Cloud, AI-animated short drama series, short video matrix, variety show series, Livestreaming, and more. These offerings provide diverse application scenarios that seamlessly blend “online/offline” and “virtual/reality” elements.
With “CHEERS+” at the core of Cheer Holding’s digital ecosystem, the Company is committed to utilizing innovative product applications and technologies to drive its long-term sustainable and scalable growth.
For more information, please visit http://ir.gsmg.co/.
Safe Harbor Statement
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the occurrence of any event, change or other circumstances that could affect the Company’s ability to continue successful development and launch of its metaverse experience centers; the ability to acquire
For investor and media inquiries, please contact:
Wealth Financial Services LLC
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
FAQ
What is the percentage stake Cheer Holding (CHR) plans to acquire in ZKZG?
How will Cheer Holding (CHR) finance the acquisition of ZKZG?
What technology does ZKZG specialize in that attracted Cheer Holding (CHR)?
When will Cheer Holding (CHR) disclose the financial details of the ZKZG acquisition?
What is the strategic rationale behind Cheer Holding's (CHR) acquisition of ZKZG?
Is the framework agreement for Cheer Holding's (CHR) acquisition of ZKZG binding?
