Cheetah Mobile announced that it has signed an agreement to sell its stake in TikTok parent company ByteDance's on May 20.
Cheetah Mobile said the transaction is expected to generate approximately $66 million in investment disposition proceeds and approximately $130 million in cash flow in the second quarter of 2020.
As of December 31, 2019, Cheetah Mobile had $338.2 million in cash and cash equivalents, restricted cash and short-term investments. The deal is expected to close by the end of June this year.
Earlier today it was reported that ByteDance's valuation rose by at least 1/3 to over $100 billion in recent non-public stock trading. Some of these deals valued ByteDance at even as much as $140 billion.
Meanwhile, Cheetah Mobile also announced today that the company's board of directors has approved a special cash dividend of $1.44 per American Depository Share (ADS), or $0.14 per common share.
The cash distribution will take place on July 9, 2020 and shareholders of record at the close of the U.S. stock market on June 23, 2020 will be entitled to the distribution.
The cash payout will total approximately $200 million, which will be funded by cash on the company's balance sheet.
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