The acquisition of Tencent wireless value-added service provider Zhuo Max 100% stake in Italy

Yesterday, Tencent Holdings Ltd (0700.HK) announced that the acquisition of wireless value-added service provider (SP) Android Italy max (Joymax) Technology Co., Ltd. 100% stake. Teng Xu will take further into the SP market, the realization of the mobile value-added market revenue and layout.

The transaction will be settled in cash, the first payment amount of the acquisition will net assets based on Max Zhuo Italy, after the performance of the amount will be calculated based on the 2006 and 2007.

Zhuo Yi Maisi was founded in January 2003, is a privately held company. Zhuo Italy Max on the mass media to promote ways to manage the wireless value-added services through its local subsidiary, the main products are mobile phone text messages, has a number of active users pay for SMS and other areas, plans to enter the wireless value-added services in the short term, such as customized ringing tone etc..

"We value the advantage in the market and Italy Zhuo Max operation, which will contribute to the development of Tencent wireless products distribution channels." Tencent chief strategic investment officer Liu Chiping said, the Tencent will use Android Italy Max in the mass media promotion expertise, combined with the existing Tencent marketing channels, marketing of wireless products.

In fact, the Tencent has been relying on mobile QQ service in the field of wireless value-added, stride forward singing militant songs, but recently has appeared the phenomenon of weak. According to the Tencent released the latest 2005 fiscal third quarter earnings, Tencent total revenue of 362 million 800 thousand yuan, an increase of 8.7% over the previous quarter, but its mobile and telecom value-added services revenue of 121 million 200 thousand yuan, down 11.2% compared with the previous quarter, a decrease of 30.2% over last year.

Industry analysts said that the Tencent's wireless value-added service products is relatively simple, has been to the mobile phone SMS mobile chat tool QQ, with China Mobile Microsoft to enter the MSN, and the increasing competition of other SP services, the Tencent of the wireless value-added business fell for the first time. The purpose of the acquisition of the Tencent is to want to expand their own wireless value-added services in the field of text messaging, CRBT, etc., to avoid further decline in the trend.