NQ Mobile Soars On Potential $708 Million Asset Sale -- Barron's Blog
6 hours 10 minutes ago - DJNF
By Shuli Ren
Troubled China mobile security provider NQ Mobile ( NQ) jumped 45% in after-hours trading after announcing two deals that will give the company much needed cash and credibility.
NQ Mobile is selling its online game publishing unit to one of Tsinghua Holding's investment unit, in a deal valued at a minimum of 4 billion yuan ($626 million). Tsinghua has famously expressed its interest to buy U.S.-based Micron (MU).
But here is the caveat: the final sale price will be determined by an independent valuer, said NQ, so this deal is nowhere close to the finishing line yet.
Separately, NQ Mobile said it had reached an agreement to sell Beijing NationSky Network Technology Co. to NationSky's founder and Chief Executive Hou Shuli for $80 million in cash. This deal is more immediate.
As of Wednesday's market close, NQ Mobile had only $271 million market cap.
NQ Mobile has lost over 85% of its market value since short seller Muddy Waters launched an attack slightly less than two years ago.
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