Newborn Town donates $50 million to support privatization of LGBTQ social networking app BlueCity

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Chinese social networking product developer Newborn Town announced on Thursday that it will set up a fund in partnership with Spriver Tech Limited and its wholly-owned subsidiary by March 31, to support the privatization of LGBTQ digital networking platform BlueCity Holdings. .

The announcement shows that the future company’s total fundraising goal is $100 million, of which Spriver’s wholly-owned subsidiary will contribute $100,000 in cash, Spriver will contribute $49.9 million. and Newborn Town will provide the remaining $50 million. Spriver is a holding company wholly owned by Liu Chunhe, chairman of Newborn Town. Earlier this month, Spriver issued a takeover bid to BlueCity.

According to the announcement, the fund will focus on TMT from a global perspective, including investment opportunities in metaverse-related areas, social media and gaming. By participating in the privatization of BlueCity, Newborn Town will officially enter the LGBTQ realm and expand its territory in the global digital social media market.

BlueCity is an Internet company dedicated to providing comprehensive social networking services for LGBTQ people around the world. It was listed on Nasdaq in July 2020.

BlueCity provides users with social entertainment, live streaming and health services. As of March 31, 2020, the platform’s products and services have entered more than 210 countries and regions around the world. Currently, it has over 58 million registered users worldwide, making it one of the largest LGBTQ communities in the world.

According to BlueCity’s third-quarter 2021 financial report, the company’s total revenue during the period was 270 million yuan ($42 million) and monthly active users of its mobile apps reached 7. ,5 millions. Also in the third quarter, the total number of paying users grew 57.1% year-on-year to 776,000, achieving sustained growth for six consecutive quarters.

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Newborn Town’s purchase of BlueCity, which has a market value of only 54 million yuan, means it has entered a new multi-billion-dollar path at a very low cost, some analysts say.

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