Chinese wireless-value added services firm Linktone (LTON) has signed an agreement with eChinaCash to purchase a 49% equity stake in its subsidiary eChinaMobile.
Linktone Chief Executive Officer Michael Li said, "We are pleased to announce this agreement between Linktone and eChinaCash, one of China's leading market integration companies. Through this agreement, Linktone will further strengthen its cross-media strategy as our new media product offerings combined with eChinaCash's traditional client base will position both companies for enhanced market penetration of services through mutual cooperation. This is yet another example of how Linktone can increase reach and value through our core wireless competencies."
Under the terms of the agreement, as joint owners of eChinaMobile, both Linktone and eChinaCash will engage in cross-selling promotional opportunities by leveraging each company's extensive customer resources. eChinaCash builds and maintains customer loyalty affinity programs and payment card programs for large corporations and financial institutions which include Chinese blue chip companies such as Sinopec and Air China.
eChinaCash Chief Executive Officer Andrew Beck stated, "Through client and partner cross-promotions and corporate sponsorships, our customized integrated marketing programs are scalable and expandable, allowing eChinaCash to work with multinational, national and regional Chinese companies to further increase product sales and promote brand image. Linktone's wireless platforms will create a value-added springboard by leveraging our extensive database of clients to an even broader spectrum of services via the mobile phone which include point redemption programs and cross-selling opportunities."
Founded in 2000, eChinaCash is led by its Chairman, Peter Norton. Norton was the founder of Peter Norton Computing and the creator of the highly popular Norton Anti-Virus suite of software programs.