Mobile internet company Cheetah Mobile Inc. (NYSE: CMCM) has entered into a new strategic cooperation agreement with Tencent Holdings Limited subsidiary Shenzhen Tencent Computer Systems Company Limited for the two-year period from January 1, 2016 until December 31, 2017.
Under the terms of the new agreement, Cheetah Mobile and Tencent will continue to provide promotion services for each other.
On December 27, 2013, Cheetah Mobile and Tencent Shenzhen initially entered into a strategic cooperation agreement, which was amended on July 31, 2014, January 30, 2015, June 30, 2015 and November 5, 2015.
Pursuant to the agreement, Cheetah Mobile would, through its PC and mobile products and platforms (including licensed products and platforms), provide various forms of promotional services to Tencent for various types of products. Under the amendment on November 5, 2015, the annual cap with respect to the fees payable by Tencent to Cheetah for the year ending December 31, 2015 was increased to RMB340 million.
Additionally, on January 30, 2015, Cheetah Mobile and Tencent expanded scope of strategic cooperation agreement, pursuant to which Tencent agrees to provide promotional services to Cheetah Mobile, subject to an annual cap of RMB100 million for the year ended December 31, 2015.
The original strategic cooperation agreement will expire on December 31, 2015.
Cheetah Mobile provides apps for mobile users worldwide, while building a global mobile ad platform for advertisers. Cheetah Mobile had approximately 567 million global mobile monthly active users in September 2015.