BroadWebAsia says it has presented a formal proposal for investment in Chinese wireless value-added services firm Linktone (LTON).

BroadWebAsia is headed by Brad Greenspan, the founder of MySpace.com, and under terms of the proposed BWA transaction, BWA or its affiliates will purchase not less than 60% of Linktone's outstanding shares using a combination of a tender offer for approximately 25% of the total shares outstanding of Linktone, or 6.0 million existing shares, at a price of US$4.18 per ADS; and a commitment to purchase US$10 million of ADSs on the open market at up to US$4.18 per share.

The BWA tender offer of US$4.18 represents a 10% premium over the price offered in the MNC Transaction.

Additionally, BWA has proposed to contribute certain BWA media assets and strategic partnership arrangements to Linktone that it believes will diversify Linktone's current business, increase revenue streams and generate incremental cash flow, and thereby, enhance shareholder value.

Brad Greenspan, chairman of BWA stated, "We believe that the BWA proposal offers Linktone shareholders an opportunity to enhance the value of their shares by introducing the necessary ingredients to develop and execute an effective business plan for Linktone in 2008 and beyond. BWA's management team has a proven track record in the media, mobile and internet industries. We would provide the strategic leadership and counsel to the Linktone management team to develop and implement an effective restructuring plan. We believe we are the right partners to bring Linktone back to profitability and increase value for shareholders through a China-focused strategy that leverages the many growth opportunities presented by this dynamic, emerging market."

Commensurate with the closing of the proposed BWA Transaction, Brad Greenspan will serve as chairman of Linktone and BWA will elect four additional directors to the Linktone Board proposed by BWA.

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