Xiaomi buys stake in Kingsoft Cloud for $1.8M

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.

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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.

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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, Cloud, Smartphones, China

Jamie Yap

About Jamie Yap

Jamie writes about technology, business and the most obvious intersection of the two that is software. Other variegated topics include--in one form or other--cloud, Web 2.0, apps, data, analytics, mobile, services, and the three Es: enterprises, executives and entrepreneurs. In a previous life, she was a writer covering a different but equally serious business called show business.

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  • Kingsoft Office Suite

    I've been using Kingsoft Office for Windows for the last year or so and really like it. My word and spreadsheet needs are relatively modest, and Kingsoft does everything I need it to do. It's noticeably quicker and just a fraction of the size of the lumbering Libreoffice 3.5 that I replaced. Boggles my mind why LO takes longer to open than even MS Office -- the reputed king of bloat.

    I also use Kingsoft Office for Android on my Asus Transformer tablet -- replacing, in this case, the android Documents to Go office suite. I find Kingsoft much easier to use. Wish I hadn't forked out the $15 for Docs to Go (since uninstalled from my tablet).

    One thing I am waiting for Kingsoft to (hopefully) update: right now, Kingsoft can read and edit MS Office 2012 format (.xlsx, .docx, .pptx) -- but can only save in the older Office formats (.xls, .doc, .ppt). A bit annoying for me, so hopefully the next free update to remedy this shortfall.
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