FAST NEWS: Scienjoy unveils new company, acquisition in its metaverse transformation
The Latest: Scienjoy Holding Corp. (SJ.US) on Thursday unveiled Scienjoy Verse Tech Ltd., a new company that will lie at the heart of its pivot to becoming a Middle East-based metaverse company away from its roots as a China-based livestreaming services provider.
Looking Up: As part of its new metaverse focus, Scienjoy also announced an agreement to buy 90% of Nujoom Almashreq Media LLC, a Dubai-based multi-channel network that creates online content.
Take Note: The Nujoom acquisition, combined with Scienjoy’s previously announced $3 million purchase of 30% of Dubai-based metaverse company DVCC Technology, could start to strain the company’s financial resources, especially if it makes more similar acquisitions.
Digging Deeper: Founded in 2011 and listed on the Nasdaq in 2019, Scienjoy started out as a livestreaming company by seizing on a format that has become one of China’s most popular types of online entertainment. But the company’s revenues and profits have begun to shrink as competition heated up, prompting it to look for alternative businesses. It announced a major shift earlier this month with its investment in DVCC Technology, operator of the metaverse-based “Dubai Verse Cup” in an exclusive partnership with the Dubai Racing Club for horse racing. The latest Nujoom investment, together with the new naming of a Dubai-based chief strategy officer, Dr. Khalifa Al Shimmari, mark the latest steps by Scienjoy to offer a wide range of metaverse products and services.
Market Reaction: Scienjoy shares rose 3.9% in early Thursday trade after the latest announcement. The stock is up 33% since the company first unveiled its new metaverse intentions on Sept. 6.
Reporting by Doug Young
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