Primedia has purchased a 50.05% stake in Exactmobile, a local mobile content provider, ending the months-long speculation that a deal was in the works.
The acquisition is in line with Primedia`s strategy to increase the group`s earnings from content, says Primedia CEO William Kirch, adding the acquisition will enable Primedia to gain access to a mobile content distribution channel.
It also improves Primedia`s ability to retail content to the end-user, a critical factor in an environment where consumers have increasing choice, says Primedia content CEO Ferdi Gazendam.
New services
"In Primedia, we have identified a visionary culture with a similar approach to content distribution as our own," says Davin Mole, CEO of Exactmobile.
Mole says the partnership allows Exactmobile to pioneer new mobile services, while at the same time enhancing its content and media.
Since its inception in 2002, Exactmobile has sold over 120 million items to over 10 million customers in SA, Mole says. The company is extending its focus to go beyond entertainment to include mobile digital communities.
Mobile users will be able to chat, blog, advertise services through the classifieds and meet potential partners, he says.
In addition to attracting the traditional mobile content users who are between the ages of 13 and 24, the building of communities is likely to attract older users who have previously not been interested in mobile content, such as ringtones and wallpapers.
Mole says the transaction will have no impact on Exactmobile`s operations and management. The transaction is subject to a number of conditions, including Competition Commission approval.
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