Linktone To Miss Quarter; Acquisition Next?

Things are looking ugly at Chinese mobile content provider Linktone…it pre-announced some numbers for its Q4 earnings ahead of the actual release, and it missed by a huge margin. And its U.S. listed shared plunged 25 percent on the news.
Quarterly profit is now expected at 3 cents to 4 cents per share (compared to previous estimates of 15 cents per share) on revenue of $20.4 million to $20.6 million. For the year, Linktone sees earnings of 43 cents to 44 cents per share (compared to earlier projected 54 cents per share).
Linktone blamed higher costs from increased rev share to content providers, lower-than-expected revenue in some parts of China due to less promotional activity, spending on ads and an upswing in operating expenses.
I think this might be the time for someone to swoop in and buy Linktone…the consolidation among the mid to big level players in Chinese mobile content market should start happening this year…already smaller players are being snapped up.

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