LTON to acquire WAP services provider

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 |  Includes: CHA, CHL, CHU
by: Ezra Marbach

Xinhua reports that LTON, a leading provider of wireless value-added services (WVAS) to
mobile phone users in China, announced the signing of a definitive
agreement to acquire Beijing Cosmos Digital Technology Co. Ltd. (Cosmos
Digital).  Cosmos Digital is a leading privately-held provider of
next-generation Wireless Application Protocol (WAP) services to China Unicom,
one of the two major mobile operators in China.  With this strategic
acquisition, Linktone expects to strengthen its overall WAP service portfolio
and development capabilities, increase its share of the rapidly growing 2.5G
WVAS market, and enhance its relationship with China Unicom.  Linktone's
business with China Unicom accounted for 13% of its gross revenues for the
third quarter ended September 30, 2004.