VODone Forays into Mobile Game Field through Equity Purchase

Online media service provider VODone Limited (SEHK: 0082) announced on October 15, 2009 that it would purchase a 70% stake in Dragon Joyce, a mobile game operator, for HKD 168 million.

VODone will pay the acquisition through HKD 40 million in cash and issuance of more than 100 million shares. After the transactions, the holding of its board chairman Zhang Lijun will be diluted from 16.21% to 15.52% and the company will extend reaches from online videos to mobile games.

Meanwhile, VODone will diversify its profit sources from online advertising to game technology R&D. It will also cooperate with Dragon Joyce in the fields of mobile TV and telecommunications value-added services.

Dragon Joyce is mainly engaged in the development of mobile games, the cellphone distribution, and the provision of Internet value-added services. It cooperates with over 300 domestic branded handset makers and distributors.

AID Partners Capital Limited acts as the go-between of the acquisition. The investor mainly invests in Asia's IT, media, and entertainment companies.

Source: dycj.ynet.com (October 16, 2009)

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