Chinese Internet group adds TV entertainment specialist
HONG KONG — Tom Online, the NASDAQ-traded Chinese Internet group, will pay up to $75 million to acquire 3-year-old wireless entertainment company Infomax, which provides interactive products and services to Chinese TV nets.
Acquisition price is set according to an earnings multiple relating to net profits in 2006 and 2007. Maximum payout will be achieved if Infomax’s earnings exceed RMB35 million ($4.38 million) this year and $8.13 million next year.
“We have accumulated a vast amount of content cooperation experiences through our partnerships with more than 200 TV stations. With the addition of Infomax, Tom Online will be able to further enhance its TV distribution network,” said Tom Online CEO Wang Lei Lei.