BEIJING, Jan. 16, 2018 /PRNewswire/ -- AirMedia Group Inc. ("AirMedia" or the "Company") (Nasdaq: AMCN), an operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers as well as a first-mover in the travel Wi-Fi market, today announced that the Company is initiating a strategic transformation from a traditional airport advertising company to an aviation and railway, long-haul bus Internet services company, focusing on providing a full range of diversified service experience and Internet services for passengers of airlines and railways, long-haul bus.
The Company, through its subsidiary AirMedia Online Group, has set up a joint venture, Unicom AirMedia (Beijing) Network Co., Ltd., in April 2017 with China Unicom and another investor, to build a global network for aeronautical communication and provide in-flight internet and provide other value-added services. This is the first step of the transformation of the Company and it is expected to improve the marketization of China's aviation mobile internet.
On January 9, 2018, China Unicom signed a strategic cooperation agreement to jointly develop the Belt and Road Initiative satellite communications business with European Communication Satellite Corporation during French President Emmanuel Macron's visit in China. Unicom Air Net Co.,Ltd will take in charge of the overall upgrade of satellite communication technology and the aviation mobile Internet operations and play an important role in the systematic construction of satellite network communication services. Air Esurfing Information Technology Co.,Ltd, a wholly-owned subsidiary of AirMedia Online Group, has accomplished the technical solutions of KU/KA dual board airborne satellite through the cooperation with Kontron Beijing Technology Co.,Ltd and Gilate Satellite Networks Ltd. Unicom Air Net Co.,Ltd will speed up the establishment of domestic independent and efficient satellite communication network systems to embrace the new opportunities in the global satellite communications market.
Also, to realize this transformation, create new industrial chains and upgrade businesses, AirMedia, through its wholly owned subsidiary, Wangfan Tianxia Network Technology Co., Ltd., has entered into an Investment Agreement (the "Agreement") on January 15, 2018 with Beijing Lords Technology Ltd. ("Beijing Lords, OFBank"), a leading blockchain company in China. Beijing Lords has obtained a USD$10 million investment from Tsinghua Tongfang and other institutional investors to entering the blockchain sector.
Pursuant to the Agreement, AirMedia and Beijing Lords agreed to establish a joint venture, where AirMedia and Beijing Lords will hold 49% and 51% equity interest upon its establishment, respectively. AirMedia will have the right to appoint one director to the three-member board of the joint venture. The joint venture will focus on the application of various blockchain products and the deployment of blockchain technology globally, specifically including:
- Storing aviation reward points utilizing blockchain technology, aiming to allow an exchange of airline points and tickets.
- Developing a wallet based on digital currency storage with price information of various digital currencies, to help global users store digital currency, make transactions and view quotes in real time.
- The blockchain technology which ensures the fairness and credibility of AirMedia's points exchange and storage through distributed ledgers.
- Blockchain technology that uniquely safeguards aeronautical publications and aeronautical media content, and provides a solution to copyright and other intellectual property issues.
Mr. Herman Man Guo, Chairman and Chief Executive Officer of AirMedia, stated, "Today marks a significant milestone as we have entered into a strategic cooperation agreement with China Unicom and step into the blockchain sector with Beijing Lords. The combination of Beijing Lord's blockchain technology with our impressive customer base gives us the credibility and scale to create a series of disruptive products based on the blockchain technology and stand apart from the competition. Looking forward, we believe the strategic transformation will position AirMedia well for sustainable growth for the years to come as an industry pioneer."
About AirMedia Group Inc.
Incorporated in 2007 and headquartered in Beijing, China, AirMedia Group Inc. (AMCN) is an operator of out-of-home advertising platforms in China targeting mid-to-high-end consumers as well as a first-mover in the travel Wi-Fi market. AirMedia sells advertisements on the routes operated by several Chinese airlines and at Sinopec's service stations in China. AirMedia also has concession rights to operate the Wi-Fi systems on trains administered by eight railway administrative bureaus in China as well as on many long-haul buses in China. For more information, please visit http://www.airmedia.net.cn.
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's business strategies and initiatives as well as the Company's business plans; the Company's future business development, results of operations and financial condition; expected changes in the Company's revenue and certain cost or expense items; trends and competition in China; general economic and business conditions in China; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
Chief Financial Officer
AirMedia Group Inc.
Ascent Investor Relations LLC
SOURCE AirMedia Group Inc.