A China-based business, MultiMetaVerse (NASDAQ:MMV), is making waves in the U.S. financial markets today. MMV stock soared this morning on a notable news item. Specifically, MultiMetaVerse entered into a non-binding letter of intent to acquire the parent company of Taomee.
Here are the essential facts. First, don’t assume that MultiMetaVerse is a metaverse-focused business. In actuality, the company creates animations and other forms of entertainment, primarily for kids. MultiMetaVerse’s offerings include animated content, comic books, collectibles, mobile games and more.
Meanwhile, Taomee is a family-oriented interactive entertainment and media group in China that, like MultiMetaVerse, offers animated content, games and other products targeting children/families. Thus, it makes sense that MultiMetaVerse would take an interest in Taomee’s offerings, as the two companies seem like a great fit.
Consequently, MultiMetaVerse disclosed its intention to acquire a 72.81% equity stake in Orient TM Parent Limited, the parent company of Taomee. Interestingly, Taomee was once listed on the New York Stock Exchange, but Orient TM took the company private in 2016.
What’s Happening With MMV Stock?
Clearly, financial traders felt good about MultiMetaVerse’s intent to take a majority equity stake in Orient TM. They ran the MMV stock price up 55% in early trading today before pulling it back somewhat.
Still, the buyers are definitely in control as the MultiMetaVerse continues to threaten the crucial $4 level. Perhaps investors are looking forward to MultiMetaVerse expanding its intellectual property portfolio through exposure to Taomee’s brands.
Plus, MultiMetaVerse Chairman and CEO Yiran Xu teased the possibility of co-creating new brands with Taomee. “We look forward to creating engaging new content and products with Taomee,” Xu declared.
At the same time, Xu looks forward to “realizing the underlying business synergies between” the two companies. For the time being, there’s certainly a lot of synergy going on in the trading community, as MMV stock is worth much more than it was 24 hours ago.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
