NEW YORK, Sept. 23, 2021 /PRNewswire/ — Color Star Technology Co., Ltd. (NASDAQ: CSCW) (hereinafter referred to as "Color Star" or the "Company"), an entertainment technology company with a global network that focuses on the application of technology and artificial intelligence (AI) in the entertainment industry, announces that its wholly-owned subsidiary, Color China, has officially signed an agreement of intent to acquire Wuhan Chujing Esports Culture Communication Co., Ltd. (hereinafter known as "Chujing Esports"). The two companies will collaborate in developing a global esports pan-entertainment sector combining their respective industry advantages. Color Star will also include this new sector as a essential part of its business.
The mergee, Chujing Esports, is an innovative cultural enterprise that focuses on internet "esports+". The company integrates new platforms, new traffic, new culture and creativity, and new ideas related to the development of esports concepts in the new era. It adopts the online and offline dual-channel business model, actively engages in sustainable and eco-friendly initiatives, and promotes college students’ innovation, entrepreneurship, and employment in the field of internet esports. So far, Chujing Esports has successfully created many top domestic traffic IPs in the esports field, with overall traffic volume reaching 100 million. The company has long-term, in-depth cooperation with many companies across China, including Tencent, DouYu, Huya TV, TikTok, Jinri Toutiao, and Zhangyou. In the future, Chujing Esports will also strive to make outstanding contributions to realize regional, new-economy growth goals.
With rapid advancement of network technology in recent years, online mobile games have become the primary source of leisure and entertainment for young people. The popularity of various live short-video broadcast platforms have led to the emergence of esports experts and IPs who are well-known for their live esports broadcasts and esports competition. In Asia, the embrace of new forms of entertainment by the younger generation, combined with the universalization of gaming, are leading to rapid market growth as well as intense esports competition and increasing demand for esports experts.
Through the merger and acquisition of Chujing Esports, Color Star and Chujing Esports will fully integrate their online and offline platforms while cultivating and developing more esports influencers, esports IPs, esports competitions, and other esports products and services. The two companies will also undertake industry synergies and comprehensive platform integration, and lay out a new business strategy for the global market. Color Star will fully utilize the diversity of its celebrity interactive platform Color Star APP, while utilizing the experience and advantages of Chujing Esports in the esports industry. The merger of celebrity entertainment and esports will benefit Color Star on many levels, including assisting with the creation of live esports shows, esports expert competitions, and other related IP, attracting more fans to join its membership base, and achieving greater profit potential.
Mr. Basil Wilson, CEO of Color Star, commented: "Our strategy to develop a global esports pan-entertainment cultural sector is not limited to the development and distribution of esports products. The series of related business synergies that can be derived from combining entertainment and esports will create many more profit possibilities. The combination of online and offline models will allow Color Star to fully explore new business opportunities. In this regard, our merger and acquisition of Chujing Esports is highly compatible and desirable. Together, the two companies will jointly promote the global esports pan-entertainment sector."
About Color Star Technology
Color Star Technology Co, Ltd. (Nasdaq CM: CSCW) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries Color China Entertainment Ltd. and CACM Group NY, Inc. The Company’s online education is provided through its Color World music and entertainment education platform. More information about the Company can be found at www.colorstarinternational.com
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market in China and other countries where CSCW conducts its business; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof unless required by applicable laws, regulations or rules.