Color Star Technology Co., Ltd. (NASDAQ: CSCW) has announced that it has decided to purchase Elephant Games to build a cross-industry alliance in developing online mobile games for the global market. The firm disclosed that its fully-owned unit Color China, inked a memorandum of understanding (MoU) to buy Guangzhou Elephant Interactive Network Technology Co., Ltd.
Elephant Games focuses on the development and operation of online games with local characteristics. Since its inception in 2017, the core team of the firm is laced with management talent from reputable game companies such as Tencent, NetEase, Boya, China Mobile Games, Entertainment (CMGE), and 4399 Network.
Additionally, after MoU, the two firms will collaborate internationally in the areas of game development, copyright distribution, and peripheral product sales. Color China will take advantage of the strategic layout and overseas listing experiences of its parent company, Color Star, which offers a diverse interactive game experience for hundreds of millions of players worldwide.
Furthermore, the acquisition of Elephant Games by Color Star will create close collaboration between the platforms of both firms. It will establish a win-win, sustainable strategic partnership. Color Star has also joined forces with other reputable game firms in order to acquire market share in the global online mobile game market.
The firm believes that as network technology continues to recover, more people will want the virtual leisure experience in the future, especially in Asia, where network technology has already infiltrated into daily life. Color Star will leverage its own technology and entertainment business advantages to make entertainment products with special celebrity intellectual property rights.