9GAG, a popular meme-sharing site, has gained control over Hong Kong-listed Howkingtech to explore opportunities in AI, cryptocurrencies, and the creator economy.
Deal with Howkingtech
According to a filing with the Hong Kong Exchanges and Clearing Limited, the acquisition of Howkingtech by 9GAG involves a maximum cash consideration of HK$79,649,599 (approximately $10.2 million), assuming all share options are exercised.
Development Plans
9GAG co-founder Ray Chan plans to rename Howkingtech to 'MemeStrategy' and is looking to invest in Bitcoin, web3 projects, and decentralized infrastructure. A press release on April 1 states that MemeStrategy will incorporate Bitcoin and other high-potential virtual assets into the company's asset allocation for long-term value growth.
Impact on Shares
Following the announcement, Howkingtech's shares on Hong Kong's stock exchange surged by 3.5%, according to Yahoo Finance data, indicating a positive market response to the acquisition and planned changes.
9GAG's acquisition of Howkingtech and subsequent rebranding to MemeStrategy indicates the company's intent to actively develop future technologies and economies by investing in AI, cryptocurrencies, and virtual assets.
