Xinhua Finance Media Acquires Mobile Service Provider in China
June 04 2007 - 10:22AM
PR Newswire (US)
Acquisition to Allow XFMedia to Market Its Content Through New
Media and Create New Interactive Services Associated with Popular
Programming BEIJING, June 4 /Xinhua-PRNewswire-FirstCall/ -- Xinhua
Finance Media ('XFMedia'; Nasdaq: XFML), China's leading
diversified financial and entertainment media company, today
announced it has signed an agreement to acquire a 100% interest in
Beijing Mobile Interactive Co., Ltd ('M-in"). This acquisition is
intended to enable XFMedia to rapidly integrate mobile service
capabilities with its existing range of popular media assets and
market a variety of new interactive products and services to more
than 487 million mobile phone users in China. Founded in November
2003, M-in is a mobile service provider ("SP") in China with SP
licenses nationwide operating on wireless Mobile Value-Added
Service (MVAS) platforms. Its wide range of mobile capabilities
include WAP (Wireless Application Protocol), text messaging (SMS),
Multimedia Messaging Service (MMS), Interactive Voice Response
(IVR), JAVA based software applications including online gaming,
and Color Ring Back Tone variously supported by China Mobile, China
Unicom, China Netcom and China Telecom. M-in has built extensive
marketing and distribution channels including television, print,
Internet and other media, and it creates and manages a wide range
of mobile and online interactive products. Its MVAS applications
are pre-loaded on certain models of Sony-Ericsson, Bird and other
leading China cell phone companies. Its products, which include
online games, text messaging voting, ring tone and wallpaper
downloads, have been used by more than 10 million users. XFMedia
CEO Fredy Bush said, 'M-in is an innovator in China's MVAS market,
and our acquisition of it is the first step in our plan to expand
XFMedia's distribution into new media. XFMedia intends to integrate
M-in's MVAS platform and mobile interactive capabilities with our
existing media assets such as our high-quality business,
entertainment, education and drama shows, allowing viewers to
interact with the shows through text messaging.' 'XFMedia also
plans to use M-in's capabilities to offer mobile interactivity with
its radio and print divisions. In addition, XFMedia intends to
create new products and services for China's more than 487 million
mobile phone users who send billions of short messages annually.
New revenue sources are expected to be created through marketing
Q&A campaigns, and voting and commentary services for TV
programs such as Fortune China via text messaging, or by providing
access to our instant financial news updates via WAP or IVR
services,' Ms Bush added. The Chief Executive Officer Ms Ao Meng
and key management of M-in have signed employment contracts and
will remain with the company. Ms Ao said she expects synergies with
other parts of XFMedia to help boost M-in's earnings. 'M-in's
creative and user-friendly products and services set new trends in
mobile communication industry,' she said. 'I believe MVAS is
becoming the mainstream of cross-media communication. The
integration of XFMedia's unique media platform with its range of
popular video, audio, digital and print content and M-in's
technology and established distribution network can differentiate
itself from traditional media most significantly by segmentation
and interactivity. This cross-media network offers advertisers the
ability to target different demographics and behavior patterns for
different promotion purposes,' Ms Ao said. The company is the
exclusive partner of China Mobile's Monternet education channel,
with more than two million users per month. It is the exclusive
partner of the China National Women's Association for donations
made by text messaging. The company is also the exclusive value
added service partner for the voting on 'World Top Ten Athletes', a
well-known event approved by the China State General Administration
of Sport. According to statistics from the Chinese Ministry of
Information and Industry, approximately 429.7 billion short
messages were sent in 2006, an increase of 41% over 2005. That is
an average of around 330 short messages for each person in the
country. There are now estimated to be over 487 million mobile
phone users in China. The transaction is expected to close on or
prior to 15th June 2007. Under the agreement, XFMedia will acquire
100% control of M-in through the purchase of 100% of the shares of
East Alliance Limited, a company which conducts M- in's business
through its wholly owned subsidiary and affiliated entities in
China. XFMedia will pay approximately US$10 million in cash to the
seller at the closing, and the vendors will be entitled to earnout
payments in cash and shares of XFMedia depending on their 2007 and
2008 financial performance. The transaction is expected to be
accretive to XFMedia's earnings per share in 2007. About Xinhua
Finance Media Limited Xinhua Finance Media ('XFMedia'; Nasdaq:
XFML) is China's leading diversified financial and entertainment
media company targeting high net worth individuals nationwide. The
company reaches its target audience via TV, radio, newspapers,
magazines and other distribution channels. Through its five
synergistic business groups, Advertising, Broadcast, Print,
Production and Research, XFMedia offers a total solution empowering
clients at every stage of the media process and keeping people
connected and entertained. Headquartered in Beijing, the company
has offices and affiliates in major cities of China including
Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more
information, please visit http://www.xinhuafinancemedia.com/ .
Xinhua Finance Media is a subsidiary of Xinhua Finance Limited
('XFL'; TSE Mothers: 9399), China's premier financial information
and media service provider. XFL owns 36.9% of the equity and 85.4%
of the voting rights of XFMedia through its holding of class B
common shares, which have ten votes per share. The investing
public, the company's China partners, executives and staff own
class A common shares in the company with one vote per share. The
dual-class common share structure was created to accommodate the
regulatory landscape of China's media sector. Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, quotations from management in this announcement
contain forward-looking statements. XFMedia may also make written
or oral forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission on forms 20-F and 6-K,
etc., in its annual report to shareholders, in press releases and
other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that
are not historical facts, including statements about XFMedia's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties
that could cause actual results to differ materially from those
contained in any forward-looking statements. Potential risks and
uncertainties are risks include but are not limited to, the risk
that the transaction may not close when expected or at all, the
China advertising market may not grow as expected and the risks, i
outlined in XFMedia's filings with the U.S. Securities and Exchange
Commission, including its registration statement on Form F-1. All
information provided in this press release is as of the date of
this release, and XFMedia undertakes no duty to update such
information, except as required under applicable law. For more
information: China Xinhua Finance Media Ms. Joy Tsang Tel:
+86-21-6113-5999 Email: United States Taylor Rafferty John
Dudzinsky Tel: +1-212-889-4350 Email: DATASOURCE: Xinhua Finance
Media CONTACT: China - Ms. Joy Tsang of Xinhua Finance Media,
+86-21-6113-5999, or ; or United States - John Dudzinsky of Taylor
Rafferty, +1-212-889-4350, or , for Xinhua Finance Media Web Site:
http://www.xinhuafinancemedia.com/
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