Guangdong Alpha Animation and Culture Co Ltd announced Wednesday it is acquiring Shanghai-based 4inch Information Technology Ltd and Beijing-based 5agame Information Technology Co.
Alpha will pay 692 million yuan ($1.14 million) for the two companies, with 443 million yuan in cash and 249 million yuan in shares, the company said on Shenzhen Stock Exchange's website.
4inch and 5agame are both online game developers. 4inch developed the popular mobile online game Monster X Monster, Beijing Youth Daily reported Wednesday. After the acquisition, Alpha will integrate the companies' operation of current games, research and development of new games, and backstage management, Beijing-based Securities Daily reported Wednesday.
Alpha is aiming to become an entertainment group that makes TV series, animation, and games, according to the report.
In September, Alpha acquired the brand and developing team of "Pleasant Goat and Big Big Wolf, a popular Chinese animated television series.
In recent acquisitions in the entertainment industry, mobile gaming has drawn attention from the capital market, driving up the stock prices of mobile game developers, Securities Daily said in the report.