CNET - ZW Data Action to acquire Henan Baodun to expand short videos ecommerce

• ZW Data Action Technologies ( NASDAQ: CNET ) has made an acquisition offer to Henan Baodun Information Technology in the letter of intent announced Thursday.
• Baodun is a full-service internet marketing company integrating content marketing, advertising effect optimization and brand marketing. In 2021, Baodun generated about $50M in annual revenue and expects double digit growth rate this year.
• Synergy: If the deal goes through, Baodun will become a wholly-owned subsidiary of ZW Data to offer one-stop eCommerce marketing service solutions, strengthening ZW Data’s short video platform market, advertising, merchandising and promotion business areas.
• This acquisition is estimated to drive a "meaningful" increase in short and long-term ZW Data’s revenue .
• "Baodun has the comprehensive agency qualification like ByteDance and Kuaishou, and can provide internet advertising and marketing resources on multiple client side product platforms, including but not limited to toutiao.com, ixigua.com, TikTok and Kuaishou," the report read.
• Baodun's executive are primarily located in Zhengzhou, Henan Province and Guangzhou, Guangdong Province. Its founder Ms. Ning Lv, recognised as one of the most experienced ECommerce operators in China, is said to join the company with the management team upon the completion of the transaction.
• Offer price and final terms to be disclosed on closing, expected in Q4 2022.
• CNET stock is up 2% in premarket.

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