BEIJING, December 6, 2011 /PRNewswire-Asia-FirstCall/ -- Linktone Ltd. (NASDAQ: LTON), a provider of media and entertainment content and services in key strategic markets in Asia, today announced that, on November 16, 2011, it purchased $5 million of PT Global Mediacom Tbk ("Global Mediacom") common stock through open market block trades on the Jakarta Stock Exchange at a price of IDR 950 (approximately US$0.106 based on the exchange rate at the time of purchase).
Based on the purchase price, this $5 million investment represents approximately 0.3% of Global Mediacom's outstanding shares. Prior to this investment, Linktone owned approximately 2.2% of the outstanding shares of Global Mediacom.
Mr. Hary Tanoesoedibjo, Executive Chairman and Chief Executive Officer of Linktone stated, "Linktone is committed to executing its growth strategy through product portfolio expansion and growth of its geographic footprint. Given our strong balance sheet and robust cash position, with over $92.8 million in cash, cash equivalents and short-term investments as of September 30, 2011, we are continuing to seek prudent investments with a goal of preserving capital while generating returns as we broaden the scope of our operations and position Linktone for sustainable growth. We believe Global Mediacom presents an opportunity to further bolster our balance sheet as we carry out our strategic and operational growth initiatives."
Global Mediacom is an affiliate of PT Media Nusantara Citra Tbk ("MNC Group"), the majority shareholder of Linktone. In addition to his position as Executive Chairman and Chief Executive Officer of Linktone, Mr. Tanoesoedibjo also serves as CEO of MNC Group. The purchase of Global Mediacom shares was approved by the Linktone Board of Directors, including the Company's independent director.
ABOUT LINKTONE LTD.
Linktone Ltd. is a provider of rich and engaging services and content to a wide range of traditional and new media consumers and enterprises in Mainland China, Indonesia, Malaysia, Hong Kong and Singapore. Linktone focuses on media, entertainment, communication and edutainment products, which are promoted through the company's strong nationwide distribution networks, integrated service platforms and multiple marketing sales channels, as well as through the networks of leading mobile operators in Mainland China and Indonesia.
FORWARD-LOOKING STATEMENTS
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that Linktone will not be able to realize meaningful returns from investments it makes, including its acquisitions or strategic partnerships, or may be required to record provisions for impairments in the value of the Company's investments; risks associated with Linktone's growth strategy, including competition in the markets in which it operates, Linktone's ability to further expand into new markets such as the Indonesian value-added services market or the market for entertainment and edutainment products in Southeast Asia, as well as possible changes in the policies of telecommunication regulators and telecom network operators in China and Indonesia or in other laws and regulations, such as tax laws, which could adversely affect Linktone's financial condition and results of operations; the effect of the share repurchase program, if any, on the trading price of Linktone's ADSs; the risk that Linktone will not be able to effectively manage entities that it acquires or effectively utilize their resources; and the risks outlined in Linktone's filings with the Securities and Exchange Commission, including its registration statement on Form F-1 and annual report on Form 20-F. Linktone does not undertake any obligation to update this forward-looking information, except as required under applicable law.
Investor Relations
The Piacente Group, Inc.
Lee Roth or Wendy Sun
linktone@thepiacentegroup.com
Tel: 212-481-2050
