Sky-mobi Up 12%; Analyst Says Company Will Become Alibaba's Key Distributor
Sky-mobi Ltd. (NASDAQ: MOBI) soared 13 percent Thursday after an analyst reported that the company will become a key distributor for Alibaba, the Chinese e-commerce giant.
"We believe there is increased traction for Sky-mobi," Rosenblatt Securities told investors. Alibaba's upcoming initial U.S. public offering is expected to surpass Facebook's $15 billion IPO in 2012.
The firm also said Sky's offline distribution channels will benefit as the Chinese government clears illegal smartphone content and as it becomes UC Web's key distributor.
UC Web will be acquired by Alibaba in a $1.9 billion deal announced last week.
Sky-mobi traded recently at $8.09 up 12.7 percent.
While it appears traders are moving the stock on this rumor, Sky-mobi also said Thursday it sold its 37 percent stake in a China-based gaming company, realizing profits of $9 million.
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