TOM Online Inc., China's leading wireless Internet company, announced that Cisco Systems Inc. and Macromedia Inc. will acquire strategic share interests in Indiagames Ltd., a leading global publisher of mobile games majority owned by TOM Online. This move enhances the India-based mobile games publisher's position for global growth.
Cisco and Macromedia will pay a total of $4 million for a combined stake of 18.2% in Indiagames through subscription of new shares. In view of Cisco and Macromedia's investments, TOM Online will not subscribe for new shares worth $4 million in the company as stated in its announcement on Dec. 17, 2004.
Following Cisco and Macromedia's investments, TOM Online's share in Indiagames will be diluted to 62.42% from 76.3%. Indiagames' original shareholders and management, including its founder Vishal Gondal, will continue to hold a 19.4% stake in the company.
"The strategic investments are beneficial to all parties," said Wang Lei Lei, TOM Online ceo/exec director. "I have confidence Cisco and Macromedia will bring significant value to Indiagames going forward given their strength and leading position in their respective business areas."
"I am delighted to have Cisco and Macromedia as investors in Indiagames," said Gondal, ceo/director of Indiagames. "We now have Chinese, Indian and American investors, all leaders in their respective verticals. This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology. "
The directors of Indiagames envision synergy coming from better visibility to future technology developments related to Internet and wireless applications, the investors' existing client network and relationships globally, and their marketing expertise and resources. Indiagames will also publish and support all its content on the Macromedia Flash Lite platform which is already having a big share in Japan and is expanding worldwide.
Founded in 1999, Indiagames has distinguished itself as a high quality and creative games developer and now counts top tier Hollywood studios, handset manufacturers and more than 100 distribution channels among its partners around the world, including Orange, Verizon, Sprint, Singtel, Airtel and Vodafone.
TOM Online Inc. is a leading wireless Internet company in China providing value-added multimedia products and services. A premier online brand in China targeting the young and trendy demographic, the company's primary business activities include wireless Internet services and online advertising. The company offers an array of products such as SMS, MMS, WAP, wireless interactive voice response services, content channels, search and classified information, free and fee-based advanced email and online games. As of December 31, 2004, TOM Online is the only portal in China that enjoyed a top three ranking in every wireless Internet service segment.
TOM Online is a subsidiary of TOM Group Ltd., one of the leading Chinese language media groups in the Greater China region. TOM Group's diverse operations span five media sectors: the Internet (through TOM Online Inc.), outdoor (through TOM Outdoor Media Group), publishing, sports and TV & entertainment.
Cisco (www.cisco.com), the worldwide leader in networking for the Internet, is an innovator in Internet Protocol (IP)-based networking technologies and works closely with major telecom and wireless carriers around the world.
Macromedia (www.macromedia.com) is a major independent software company whose Flash technology is viewed as one of the hottest wireless applications.