Enjoy Media has signed an agreement to acquire 10% equity interest in YYFC.com from Guangzhou XinKuai Technology Company Limited, valued at US$625,000 and to be settled by issuance of restricted common shares of Enjoy Media.
YYFC is one of the largest and most visited music portals nationwide in China with over 1 million registered members, who actively swap music files recorded originally from YYFC members.
Members can upload and showcase their original songs, download music tracks and rate the songs, or purchase MP3 or mobile phone ring tone versions of the song clips. YYFC offers local content that caters to the music tastes and local culture of youth in China.
In addition, Enjoy Media expands its online advertising business by signing a three-year exclusive service contract with YYFC, receiving 15% gross income from advertisements sold on www.YYFC.com.
China's online advertising is a US$330 million market in 2005, according to iResearch.com.cn, and it could reach US$490 million in 2006.