Taking Social Platform Private, MICO’s Parent Company Stared at LGBTQ Business

New York, United States – May 16, 2022 /MarketersMEDIA/ —

On 30th April, BlueCity (NASDAQ: BLCT), an LGBTQ social platform announced that it has entered into an Agreement and Plan of Merger with an equity value of approximately US$60 million for all of the Company’s outstanding ordinary shares.

BlueCity announced that its board of directors received a preliminary non-binding proposal letter from its founder Baoli Ma and Spriver Tech Limited, a company with the single largest shareholder of MICO’s parent company, Newborn Town (SEHK:9911). In January, the buyers proposed the purchase price of US$3.70 per Ordinary Share or US$1.85 per ADS in cash, while the final price was lower than the initial offer.

MICO is a social APP on Google Store and is popular in the Middle East, Southeast Asia and other regions. Its parent company Newborn Town is a Chinese mobile internet company founded in 2009 and listed on the Hong Kong Stock Exchange in 2019. The company is also the developer of Solo Launcher and has other social networking products including YoHo and Yumy.

BlueCity, Deep in Quagmire of Losses

BlueCity was listed on the Nasdaq in July 2020. Its most well-known product is Blued. Blued has the largest LGBTQ+ community in India, South Korea, Thailand, Vietnam and other regions. By the fourth quarter of 2021, its monthly active users reached 7.2 million, with paying users of 735.3 thousand.

However, from listing to privatization, it only took around a year. 

We may be able to find answers in previous financial reports. BlueCity’s total revenue in the fourth quarter of 2021 was 38.2 million dollars, a year-on-year decrease of 12.6%, and a net loss of 23.3 million dollars compared to a net loss of 5.4 million in the second quarter, indicating that BlueCity has been difficult to stop its decline.

Is MICO Entering into LGBTQ Business？

BlueCity has “He Health” and membership services. In the fourth quarter of 2021, revenues from membership services increased by 51.3% year-on-year to 5.3 million dollars. Merchandise sales revenue generated by “He Health” reached 2.3 million dollars with a year-on-year growth of 40.2%.

Live streaming services, the core business of BlueCity, gained 28.8 million dollars in revenue in the fourth quarter of 2021, a decrease of 17.9% compared with the same period of 2020. Sluggish growth of live streaming revenues caused BlueCity not favoured by the capital market and finally brought the company to a delisting. How to reverse the badly fallen core business of Blued may become one of the challenges for MICO.

Even though the financial performance of BlueCity wasn’t good, tens of millions of registered users behind  Blued will bring direct traffic growth to the community of MICO as MICO already has a huge user base and rich experience in this market. By taking advantage of Blued’s operational experience with the LGBTQ community and its innovative business, MICO will hopefully get empowered in the Middle East where such social applications are still out of bounds. A Middle East Grindr may rise in the near future.

Contact Info:
Name: Alan Claig
Email: Send Email
Organization: AD Consultants
Website: http://www.adconsults.com

Release ID: 89075110

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