MultiMetaVerse (NASDAQ: MMV) stock more than doubled on Monday after an animation and entertainment company signed a term sheet to acquire Bowong Technology.
MultiMetaVerse (MMV) has taken a significant step towards expansion by signing a non-binding term sheet to acquire 100% ownership of Bowong Technology (Shenzhen) Co., Ltd. and its subsidiaries. The acquisition, if completed, would see MMV issuing its Class A ordinary shares to Bowong AI shareholders as consideration, subject to further due diligence and negotiation. The Consideration Shares will be under a lock-up period of one year. MMV has secured an exclusive 90-day period to negotiate a definitive agreement for the Proposed Transaction.
Founded in 2022, Bowong AI specializes in AI-driven e-commerce solutions, focusing on innovative marketing content creation and distribution outreach. Leveraging self-developed AI models tailored for e-commerce, Bowong AI addresses the challenges associated with time and budget constraints in content creation for online merchants.
Management Commentary
Yiran Xu, Chairman and CEO of MMV, expressed enthusiasm for the Proposed Transaction and highlighted Bowong AI’s expertise and technology in the e-commerce domain. He said,
“We are deeply impressed by Bowong AI’s expertise and technology. The team’s experience in the e-commerce business enables Bowong AI to understand the pain points of merchants, and to offer an effective, high-quality, and efficient solution.”
Xu further outlined the strategic rationale behind the acquisition, stating,
“We believe that e-commerce related AI will be one of the earliest niche markets resulting in commercial success in the AI revolution.”
He highlighted the potential synergies between Bowong AI’s expertise in image and video generative AI and MMV’s animation and gaming business, foreseeing opportunities to enhance content quality and reduce production costs.
Moreover, Xu emphasized the strategic importance of Bowong AI’s AI-powered e-commerce business model in bolstering MMV’s merchandise business, indicating the potential for significant growth and diversification in MMV’s portfolio.
MultiMetaVerse (NASDAQ: MMV) Stock Reaction
MMV stock soared 114.51% on Monday, closing at $1.33. This marks a 142.70% increase over the week. Trading volume surged to 129,143,792 (129.14 million) shares, significantly higher than the average daily volume of 134.71K.
