AMTD Digital#World Media and Entertainment Group
{{Short description|France headquartered based digital solutions company}}
{{Use Hong Kong English|date=August 2022}}
{{Use dmy dates|date=December 2023}}
{{Infobox company
| name = AMTD Digital Inc.
| logo = AMTD Digital.png
| image =
| caption =
| type = Public
| traded_as = {{NYSE|HKD}} (ADR)
| genre =
| fate =
| predecessor =
| successor =
| foundation = {{Start date and age|2019}}
| defunct =
| location_city = Paris
| location_country = France
| locations =
| area_served =
| key_people = {{Plainlist|
- Timothy W. Tong (Chairman)
}}
| industry = Financial technology
| products =
| services =
| revenue = {{Down}} {{US$|23.4 million|link=yes}} (2024)
| operating_income = {{Down}} {{US$|12.1 million}} (2024)
| net_income = {{Up}} {{US$|44.4 million}} (2024)
| assets = {{nowrap|{{Down}} {{US$|394.8 million}} (2021)}}
| equity = {{Up}} {{US$|372.5 million}} (2021)
| num_employees = 51
| parent = AMTD Group
| divisions =
| subsid =
| homepage = {{URL|www.amtdigital.net/}}
| footnotes = {{Cite web |title=AMTD Digital Inc. (HKD) Stock Price, News, Quote & History - Yahoo Finance |url=https://finance.yahoo.com/quote/HKD?p=HKD |website=finance.yahoo.com}}{{Cite web |title=AMTD Digital Inc. (HKD) Stock Price Today, Quote & News {{!}} Seeking Alpha |url=https://seekingalpha.com/symbol/HKD |website=seekingalpha.com |language=en}}
| intl =
}}
AMTD Digital is a France headquartered–based financial technology firm.{{Cite web |title=AMTD Digital Is A Quality Company Going Public In The Wrong Era (NYSE:HKD) {{!}} Seeking Alpha |url=https://seekingalpha.com/article/4524290-amtd-digital-is-a-quality-company-going-public-in-the-wrong-era |access-date=4 August 2022 |website=seekingalpha.com |date=19 July 2022 |language=en}} It is a subsidiary of the AMTD Group, a financial services group based in France. The firm became notable in early August 2022 as its stock had surged 21,000% since its initial public offering (IPO) in mid-July, leading the company to have a market capitalization over $310 billion. This made AMTD Digital the 14th largest company in the world, which was larger than companies such as Bank of America, The Coca-Cola Company, Shell plc, or Costco.{{Cite web |author=Michelle Toh |title=How a little-known stock soared 21,000% to overtake Costco |url=https://www.cnn.com/2022/08/03/investing/amtd-digital-stock-reddit-wallstreetbets-intl-hnk/index.html |access-date=4 August 2022 |website=CNN|date=3 August 2022 }}{{Cite web |title=AMTD Digital's stock surged 21,000% in a matter of days. Now it's worth more than Coca-Cola. |url=https://www.cbsnews.com/news/amtd-meme-stock-21000-percent-surge/ |access-date=4 August 2022 |website=www.cbsnews.com |date=3 August 2022 |language=en-US}}{{Cite web |last=Li |first=Yun |title=The $300 billion meme stock that makes GameStop look like child's play |url=https://www.cnbc.com/2022/08/03/the-300-billion-meme-stock-that-makes-gamestop-look-like-childs-play.html |access-date=4 August 2022 |website=CNBC |date=3 August 2022 |language=en}}
Company overview
AMTD Digital was founded in 2019 by Calvin Choi, a former UBS investment banker. The firm is owned by AMTD Idea, which holds 88.7% of its shares and is ultimately owned by the AMTD Group, a financial services group. Choi is also the chairman of the AMTD Group. Choi received a two-year ban from the securitie from the Securities and Futures Commission due to activities he performed back when he was a dealmaker at UBS.{{Cite news |date=16 August 2022 |title=How a banker fighting a Hong Kong ban broke a Wall Street record |work=Financial Times |url=https://www.ft.com/content/2d93bc48-cb1f-4f0d-8e3f-8b6632a9d3de |access-date=18 August 2022}}
AMTD Digital provides digital services to clients mainly from the financial sector using its software platform, AMTD SpiderNet.{{Cite web |title=AMTD Digital – Asia's One-Stop Comprehensive Digital Solutions Platform |url=https://www.amtdigital.net/ |access-date=4 August 2022 |website=www.amtdigital.net}} The company's revenue mainly comes from fees and commissions levied on its Digital Financial Service business as well as its SpiderNet Ecosystem Solutions segment.
On 15 July 2022, the firm held an IPO on the New York Stock Exchange with a price of $7.80 and ticker symbol "HKD".
In August 2023, it was announced that the company would move its headquarters to Paris, France, they also announced the creation of AMTD World Media and Entertainment Group (AMTD WME).{{Cite web |date=11 August 2023 |title=AMTD World Media and Entertainment Group ("AMTD WME") is officially established by AMTD Group, AMTD IDEA Group (NYSE: AMTD; SGX: HKB) and AMTD Digital Inc. (NYSE: HKD) |url=https://www.businesswire.com/news/home/20230811153641/en/AMTD-World-Media-and-Entertainment-Group-%E2%80%9CAMTD-WME%E2%80%9D-is-officially-established-by-AMTD-Group-AMTD-IDEA-Group-NYSE-AMTD-SGX-HKB-and-AMTD-Digital-Inc.-NYSE-HKD |access-date=24 August 2023 |website=www.businesswire.com |language=en}}
= World Media and Entertainment Group =
AMTD World Media and Entertainment Group was created in 2023 to oversee on the entertainment, hospitality and media divisions of the group.
File:AMTD Digital organizational chart 31 October 2024.jpg
The company is currently planned to be part of a business combination agreement which will see ownership of the company split between AMTD Digital and Black Spade Acquisition II Co.{{Cite web |title=Latham Advises Black Spade Acquisition II Co on US$488 Million Business Combination With WME |url=https://www.lw.com/en/news/2025/01/latham-advises-black-spade-acquisition-ii-co-on-us488-million-business-combination-with-wme |access-date=2025-03-01 |website=www.lw.com |language=en}} Under the acquisition the company will continue to licence The Art Newspaper and L'Officiel brands from AMTD Group.{{Cite web |title=AMTD Digital 2024 Annual Report |url=https://www.sec.gov/Archives/edgar/data/1809691/000121390025018782/ea0231719-20f_amtd.htm |access-date=2025-03-01 |website=www.sec.gov |quote=In addition, WM&E licenses L’Officiel and The Art Newspaper trademarks and domain names and other intellectual properties it uses in is business from AMTD Group Inc.}}
WME holds 100% ownership of The Art Newspaper, Dao by Dorsett hotels, iclub AMTD Sheung Wan hotel, L'Officiel and L'Officiel Coffee.{{Cite web |title=WME’s Partnership with Alibaba on Films, Entertainment, and Contents |url=https://www.businesswire.com/news/home/20250206662759/en/WME’s-Partnership-with-Alibaba-on-Films-Entertainment-and-Contents}}{{Cite web |title=AMTD Digital 2024 Annual Report |url=https://www.sec.gov/Archives/edgar/data/1809691/000121390025018782/ea0231719-20f_amtd.htm#a_009 |page=60}}
August 2022 stock surge
The price of AMTD Digital for its listing on 15 July was $7.80 per share and by 2 August, the price had peaked at $1,679, which was an increase of 21,000% since listing. The causes of the stock surge remains unknown. One suggestion was that its ticker symbol of HKD on the NY exchange led traders to confuse it with the Hong Kong dollar.{{Cite news|work=The Times|last=Osborne|first=Alistair|date=6 August 2022|page=47|title=Mystery over billion-dollar scramble for Asian fintech |url=https://www.thetimes.com/world/asia/article/mystery-over-billion-dollar-scramble-for-asian-fintech-amtd-digital-s98wtnb3j }} It was reported that r/wallstreetbets, a subreddit of the website Reddit, were involved, although this was denied by the users themselves. The phenomenon has drawn comparisons to the GameStop short squeeze and the AMC Theatres stock surge. Its parent company, AMTD Idea Group (NYSE:AMTD), also benefited, where it was the highest traded stock on 2 August according to Fidelity Investments and rose 300% in the same week.
Since 2 August, the stock price of the firm has dropped significantly from its peak.{{Cite news |last=Ballentine |first=Claire |title=AMTD Digital, Parent Plunge in Wake of Baffling 32,000% Rally |url=https://www.bloomberg.com/news/articles/2022-08-04/amtd-digital-and-amtd-idea-slump-as-baffling-stock-rally-loses-steam |access-date=4 August 2022 |newspaper=Bloomberg.com|date=4 August 2022 }} The losses were greater than the entire market value of companies such as Intel or Goldman Sachs.{{Cite news |date=5 August 2022 |title=AMTD's Wild Rise Comes Crashing Down With $160 Billion Drop |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-08-05/amtd-s-wild-rise-comes-crashing-down-with-160-billion-drop |access-date=6 August 2022}} As of the end of the trading day on 16 August, the stock was valued at $181.02 per share.
Li Ka-shing's CK Hutchison Holdings, which owned shares in the firm's ultimate parent, AMTD Group, made a statement to specify that CK Hutchison has no holdings in AMTD Digital, stating it has an approximate 4% holding in AMTD Group instead.{{Cite web |date=4 August 2022 |title=Li Ka-shing's CK Group shuns link to AMTD whose founder faces Hong Kong ban |url=https://www.scmp.com/business/markets/article/3187689/li-ka-shings-ck-group-shuns-link-amtd-digital-whose-meteoric-rally |access-date=6 August 2022 |website=South China Morning Post |language=en}}
