As the trading week comes to a close today, one of the stocks that is expected to be on the radars of many investors is of ZW Data Action Technologies (NASDAQ:CNET).
The ZW Data Action stock was in major focus yesterday following a key announcement and ended up with gains of as much as 37% as investors piled on to the stock in a big way. The company announced yesterday that it had inked a letter of intent with regard to the acquisition of Henan Baodun Information Technology Co Ltd. The purpose of the acquisition is for ZW Data Action to further expand its operations in the video platform space. It is a fast-growing sector and hence, it was perhaps no surprise that there was such excitement among investors.
ZW Data Action, which is involved in the advertising and marketing space, also announced that the terms of the acquisition and the offer price have not yet been determined. However, the company noted that it was aiming to close the transaction at some point in the fourth fiscal quarter.
In the 2021 fiscal year, Henan Baodun had managed to clock revenues of as much as $50 million and has projected that its growth in 2022 is going to be in double digits. Once the acquisition is completed, Baodun is going to be turned into a fully owned subsidiary unit of ZA Data Action.
Baudun has emerged as an internet market company that offers all the services that one can imagine. It not only offers brand marketing but also ad effect optimization and content marketing. It is going to be a strategic acquisition for ZW Data Action since it is going to boost its competitiveness by several degrees since it will particularly help with its short video platform space move.