Chinese wireless value-added services firm Linktone Ltd. has entered into a definitive agreement to acquire a controlling interest in Letang Game Limited.
Letang is a privately-held Chinese company specializing in the development of mobile games and PC online games. Under the terms of the transaction, Linktone has agreed to pay up to USD9.15 million in cash to acquire 50.01% of the equity of Letang. Letang will receive USD2.56 million in cash at the closing of the acquisition, with the remainder of the consideration payable upon the achievement by Letang of certain financial milestones during years 2010 and 2011.
"We believe that this is a great partnership that will benefit both Letang and Linktone," said Fan Xiaoqing, chief executive officer of Letang. "We are proud to be a part of Linktone and look forward to expanding our share of the Chinese game market."