BEIJING-Chinese mobile Internet provider Tom Online agreed to buy Treasure Base Investments Ltd., a Chinese wireless entertainment company, for $66 million.
The cash-only deal will expand Tom Online’s distribution and promotion base by adding more than 60 television channels broadcasting to 100 million Chinese households and will expand the company’s subscribers by 1.5 million.
“The acquisition of Treasure Base is in line with our business strategy to grow Tom Online both organically and through acquisitions,” said Wang Lei Lei, executive director and chief executive officer of Tom Online. “Treasure Base has a leading market share in the wireless entertainment segment, and its success in building partnerships with leading Chinese TV networks will further solidify our leading position in the wireless Internet market in China.”
Tom Online’s stock rose 6 cents to $10.08 on news of the agreement early Wednesday. The deal is expected to close by the first quarter of next year.
