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Gigamedia Announces Termination To Acquire Strawberry Cosmetics

The following excerpt is from the company's SEC filing.

TAIPEI, Taiwan, October 7, 2015 GigaMedia Limited (NASDAQ: GIGM), an online games and computing services provider (the Company or GigaMedia), today announced that it has entered into a mutual termination agreement with the shareholders of Strawberry Cosmetics Holding Limited (Strawberry Cosmetics), a global cosmetics e-commerce company, to terminate a share purchase agreement that the parties previously entered into on June 26, 2015 for GigaMedia to acquire a 70% equity interest in Strawberry Cosmetics (the Acquisition). The total consideration payable by the GigaMedia for the Acquisition was approximate ly US$93.1 million.

Due to the recent and drastic slowdown in global economy and stock market that resulted in a change in business development strategy on the part of GigaMedia, the board of directors of GigaMedia concluded that the mutual termination of the Acquisition was in the best interests of GigaMedia stockholders. In connection with the termination, the parties have entered into a mutual termination agreement, whereby GigaMedia will pay $2.0 million...