As some wireless value-added service providers in China are cutting staff and losing money, CDC Corporation (CHINA) has decided to purchase two service providers for a combined HK$198 million.
CDC Mobile Media Corporation, a wholly owned unit of China.com Inc, purchased Beijing TimeHeart Information Technology and TimeHeart Science Technology and holding firm Fresh Earn Holdings Ltd.
In the past eighteen months, China Mobile (CHA) has cut wireless services to companies like CDC for failure to comply with consumer-oriented rules. Last week, competitor KongZhong (KONG) announced that it was slashing staff in order to get a better handle on its diminished prospects.
