Buongiorno acquires eDongAsia’s majority stake
Rating: Translation: kerching in Chinese
Buongiorno acquires majority stake of eDongAsia, a Chinese premium content firm,
From the press release:
Under the agreement’s terms, Buongiorno Hong Kong will acquire up to 80% of eDongAsia’s share capital by cash for a total amount of about USD 2.7 million. The remaining percentage (about 20%) will stay under the current shareholders’ control.
“The Chinese mobile content market is burgeoning and it represents a tremendous opportunity for global companies operating in the digital entertainment market, as Buongiorno. We therefore decided to cautiously enter the Chinese market by leveraging on a small-sized, fast-growing entity in which our joint venture Buongiorno Hong Kong will invest in terms of know-how, people and capital. This will allow our Group to seize the local challenging business opportunities without facing risks in the short term,” stated Andrea Casalini, Chief Executive Officer of Buongiorno SpA.
What we think
Buongiorno purchased Freever a while back and its acquisition strategy is focused on new mobile community and shared content services. Moving into the Chinese mobile market is a good move: it is already one of the world’s largest with 449 million customers, but this only equates to 34% of the population, so there’s still enormous potential. eDong is translated as The Mobile City. Its platform will enable Buongiorno to offer its branded services to existing eDong users.
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