Expand / Collapse search
Watch TV
Menu

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions.  Legal Statement.

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Markets
Published | Updated

Why NQ Mobile Stock Jumped Today

What happened

Shares of NQ Mobile (NYSE: NQ) jumped on Thursday, closing out the day with a 12% gain, after the company provided an update on its FL Mobile divestment and sale of Showself's life social media video business. The company received a hefty cash infusion as part of the ongoing process.

So what

NQ Mobile received an additional 800 million yuan ($120.5 million), which is in addition to the 150 million yuan ($22.6 million) that it had received back in March when it signed the agreement. Adding up those two figures, NQ Mobile has now received a total of 950 million yuan ($143 million) so far.

The company has been working on divesting these assets for quite some time.

Now what

NQ Mobile says that the Tongfang Investment Fund remains committed to completing the divestments, which will include acquiring a 63% equity stake in FL Mobile, which is the interest that NQ Mobile currently holds, for a total cash consideration of 2.5 billion yuan ($379.5 million), based on FL Mobile having a total valuation of 4 billion yuan ($602.3 million). The fund will also acquire NQ Mobile's 65% stake in Showself for a total of 800 million yuan ($120.5 million), based on Showself having a total valuation of 1.23 billion yuan ($185.2 million).

NQ says it continues to work with Tongfang to complete the transaction as soon as possible, and all parties are confident they can complete the deals quickly.

10 stocks we like better than NQ MobileWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and NQ Mobile wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of November 6, 2017

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.