AirNet Technology (NASDAQ:ANTE) news for Thursday includes a deal with Dragonpass that has ANTE stock soaring higher.
The deal has Dragonpass taking a 1.61% equity interest in one of AirNet Technology’s subsidiaries through a capital increase agreement. This has it spending 10 million yuan for this equity interest. The subsidiary provides content to travelers on planes.
The deal also has Dragonpass expressing interest in further equity interest in the company. It wants to increase this to a total of 30 million yuan. The deal allows for additional negotiations before Dragonpass moves forward with the remaining 20 million yuan equity interest.
Herman Guo, chairman and CEO of AirNet Technology, said this about the news.
“We are pleased to see that Dragonpass is optimistic towards the growth of the Company’s business segment of providing media contents on airplanes as well as the potential developments of the Company as a whole. The synergies between the two companies shall inspire new business opportunities beyond the subscription of equity interests.”
AirNet Technology and Dragonpass are both Chinese companies that specialize in providing entertainment during travel. AirNet Technology focuses on air travel with entertainment and internet access for flights. Dragonpass offers entertainment for several modes of transportation, such as planes, trains, and automobiles.
ANTE stock was up 12.5% as of Thursday afternoon but is down 8.9% since the start of the year when markets closed on Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
