What happened
Shares of digital media company Remark Holdings (MARK -5.33%) climbed as high as 24.7% on Monday, following a $10 million investment from Thailand-based Charoen Pokphand Group (CP Group) in Remark's business. The stock is up 21.5% at the time of this writing.
As part of the investment, Remark and CP Group will form a joint venture partnership focused on artificial intelligence data solutions, explained a press release from Remark Holdings. "The partnership's first initiative will be to launch an innovative AI Solution and Application for the Real Estate and Commercial Mall sector in Q1 2018."
Image source: Getty Images.
So what
Investor bullishness toward Remark on Monday likely reflects CP Group's confidence in Remark, represented in its $10 million investment in the company and in its optimistic outlook for Remark. CP Group chairman Soopakij Chearavanont said he sees "tremendous potential in Remark and its KanKan subsidiary..."
Now what
With CP Group being the only foreign company approved to own and operate a TV channel under the Chinese media authority, CP Group and Remark's joint venture will be particularly focused on growing and scaling Remark's KanKan artificial intelligence and data solutions platform in Asia.
"There is massive demand in Asia for AI technologies," said Remark CEO and chairman Kai-Shing Tao. "This investment will help us achieve Asian market penetration and rapidly drive accelerated growth, revenue, and profits."
