Online games and computer provider GigaMedia has entered into a mutual termination agreement with the shareholders of global e-commerce provider Strawberry Cosmetics, ending a share purchase agreement under which GigaMedia was due to acquire a 70 percent equity interest in Strawberry Cosmetics valued at US$93.1 million.
GigaMedia has attributed the mutual termination to the ‘recent and drastic slowdown of the global economy and stock market’. Under the agreement, GigaMedia will pay a US$2 million ‘consideration’ to the shareholders of Strawberry Cosmetics.
Collin Hwang, CEO of GigaMedia commented, “While the rapid changes and instability in global economic condition have forced us to re-evaluate our moving forward strategy, GigaMedia continues to believe Strawberry Cosmetics to be well established with a proven e-commerce platform. We believe that potential synergies continue to exist between GigaMedia’s expertise in information technology and Strawberry Cosmetics’ excellent product portfolio and consumer reach. While GigaMedia will no longer take majority interest in Strawberry Cosmetics, we will continue to explore possibilities of other cooperation arrangements to explore synergistic opportunities.”