The Zhitong Finance App learned that Phoenix New Media (FENG.US) sold all of its shares in Beijing Yitian Xindong Network Technology Co., Ltd. to Shenzhen Shenghuayu Energy Saving Service Co., Ltd. for RMB 313.6 million in cash.

According to the equity transfer agreement, Shenzhen Shenghuayu Energy Saving Service Co., Ltd. agreed to acquire shares sold by Phoenix New Media, accounting for 51% of Yitian Xindong's interests. Starting May 18, 2020, Yi Tian Xindong will be separated from the consolidated financial statements of Phoenix New Media.

The main business of Beijing Yitian Xindong Network Technology Co., Ltd. is online literature business, online information services, the provision of online music and entertainment products, game products, animation products, online cultural products, exhibition and competition activities for online cultural products, and the operation of electronic announcement services. The company owns and operates a mobile and online literature platform, Tadu Literature, and the company is also a wholly-owned subsidiary of Tianyin Communications, a subsidiary of Tianyin Holdings.

According to information, Tianyin and Phoenix New Media currently have differences over the performance targets under the original agreement, and disputes between shareholders have caused turmoil in the Tadu Literature Management Team. Phoenix News believes that selling shares and exiting can avoid potential lawsuits. The transaction price also includes an 8.9% premium on the investment amount under the original acquisition, which is a fair and reasonable price according to market standards.