Xiaomi buys stake in Kingsoft Cloud for $1.8M

Summary:Subsidiary of China's Kingsoft company sells 9.87 percent stake to Xiaomi, saying the latter's popular smartphones will help boost its position as a cloud storage provider for the mobile platform.

Chinese mobile phone company, Xiaomi, is forking out US$1.82 million to buy a 9.87 percent stake in a subsidiary owned by Chinese software company, Kingsoft.

Both companies reached a share purchase agreement where Kingsoft Cloud Group will issue and sell a total of 91 million Kingsoft Cloud shares at US$0.02 per share, according to a filing at the Hong Kong Stock Exchange issued Friday.

xiaomi1s250px
Xiaomi 1S phone (Credit: Xiaomi)

Kingsoft Cloud will use the proceeds from the sale to develop its principal business, plough it back into capital expenditures and general working capital, or toward other purposes as approved by the board of the group, the statement said.

The company said it develops technology services which can be used on smartphone platforms and decided to sell its shares to Xiaomi , which smartphones are popular and highly sought after in China. Having Xiaomi as an investor and business partner will promote and strengthen Kingsoft's position to become one of the leading cloud storage providers in China, it added.

Xiaomi in October announced plans to expand its business into Taiwan, Hong Kong and Singapore via online sales. It said it would introduce handsets to markets "similar" to mainland China and was targeting to do so by the end of 2012. 

The smartphone maker last month also launched a set-top box , called Xiaomi Hezi, which allows users to wirelessly stream videos, images, and music content to a television. 

 

Topics: Mobility, China, Cloud, Smartphones

About

Jamie Yap covers the compelling and sometimes convoluted cross-section of IT and homo sapiens, which really refers to technology careers, startups, Internet, social media, mobile tech, and privacy stickles. She has interviewed suit-wearing C-level executives from major corporations as well as jeans-wearing entrepreneurs of startups. Prior... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.