Fangda served as transaction legal counsel for MultiMetaVerse Holdings Limited (“MMV“)” in its acquisition of Taomee’s PRC entities, i.e., Shanghai Shengran Information Technology Co., Ltd. and all of its consolidated VIEs. The transaction price consisted of RMB 543 million in fixed consideration and a minimum of RMB 17 million in variable consideration based on certain adjustments, representing 100% equity shares in Taomee’s PRC entities. The transaction was signed and publicized on September 15, 2023.

MMV is a Nasdaq-listed company focusing on animation and entertainment catering to China’s youth market. The company established a brand-centered business model to independently innovate and develop proprietary brands in the Chinese entertainment industry, market these brands to users, motivate users with original user-generated content (UGC), and create long-term engagement by users through immersive online and offline entertainment experiences.

Taomee is one of China’s leading entertainment and media companies for the youth market, with established and popular original brands including “Mole’s World”, “Seer” and “Flower Angel”. It has successfully developed and operated many popular video games.

The acquisition is a major milestone for MMV in expanding its portfolio and will significantly enhance its financial performance from both revenue and cash flow perspectives.

The Fangda team on this deal was led by corporate partner Sufina Cai, and the team members included IP partner Devan Shao, counsels Winnie Yu and Cabrina Fu, and associates Phyllis Luo, Kate Kong, Tracy Long and Spencer Zhu. Fangda handled the legal due diligence and the deal structuring and documentation.