Malaysian company GMO (listed on London’s AIM) has acquired a 20% stake in China’s Wisdom Choice Investments for RM60.42 million in a move that will enable it to gain entry to China’s mobile content market. “GMO also has the option to acquire the remaining stake in Wisdom Choice for RM349.23 million by Feb 15, 2007, by cash or GMO shares issue but conditional upon the latter achieving a pre-tax profit of RM35 million for its year ending Dec 31, 2006.”
“GMO chief executive officer Eugene Goh said its plan was to make Wisdom Choice a subsidiary and, together with another GMO unit Beijing Hongxun Communication Technology Co Ltd, they would provide mobile content to 31 provinces in China…”We believe we can achieve a market share of 10% to 15%. Right now the number one company is Sina.com, which has a 15% to 20% market share, but we are aiming to be the number one player by end-2007 and, with this acquisition, we are close to being on par with them.”
Subscriber content
?
Subscriber content comes from Gigaom Research, bridging the gap between breaking news and long-tail research. Visit any of our reports to learn more and subscribe.
Advertisement
Advertisement
Advertisement
Comments have been disabled for this post