Embattled Chinese mobile value-added services provider Linktone (LTON) says it will not make an offer to acquire Britain's MonsterMob.
The decision comes after MonsterMob held a shareholder meeting on February 23.
Linktone reported last week that it was thinking of offering approximately US$77.8 million to acquire all of the outstanding equity of the UK-based MVAS company if MonsterMob's shareholders rejected a pending offer from LaNetro Zed to acquire a 52.6% interest for approximately US$66.8 million. However a majority of MonsterMob's shareholders did accept the Zed offer.
Linktone chair Elaine LaRoche said, "While Linktone believes that the combination of our business with that of MonsterMob made good strategic sense and had the potential to provide economic value to shareholders on both sides, we respect the decision made by MonsterMob's shareholders on Friday. The Board of Linktone continues to consider all opportunities to enhance shareholder value. While our core business in wireless value-added services in China continues to grow, we continue to explore opportunities to extend our footprint in to new markets in China and if an appropriate opportunity arises, abroad."
Linktone has come under heat in China from new consumer-friendly regulations, limiting its once optimistic business options. This might be one reason why Linktone is looking outside the Middle Kingdom for acquisitions.