Monstermob signs new acquisition deal

Lancashire-based mobile content provider, Monstermob, has announced the signing of a definitive agreement for the acquisition of Chinese mobile games developer and service provider, M Dream.

Based in Hangzhou, China, M Dream develops its own proprietary mobile software and additional content, in addition to securing third party properties which are developed and adapted for the Chinese mobile market.

Since its inception in 2002, the company has continued to show rapid growth and positive commercial success, leveraging a current portfolio of over 250 mobile games, including a number of the most popular titles in China, such as Metal Slug and King of Fighters.

M Dream currently produces approximately fifteen new titles per month, generating un-audited revenues of USD 1.9 million in the fourth quarter of 2005, with over 400,000 mobile game downloads per month via China Mobile's Treasure Box games portal and China Unicom's Uni-Magic portal. It also acts as a service provider, selling ring tones, wallpapers and other related content through Monternet, China Mobile's WAP platform.

Martin Higginson, Monstermob CEO, commented: "We are delighted to have agreed to acquire M Dream, the leading remaining independent games developer in China. This transaction marks a further step in Monstermob's objective of building the leading mobile content business in China and we continue to seek appropriate opportunities to strengthen the Group further."

"This is our first acquisition of a content production house, something we believe will be pivotal to our success as we move forward. To acquire a profitable games business with a No. 1 position on the China Mobile games portal is a real coup," Higginson added.

The acquisition, its estimated value USD 30-35 million payable in cash and shares, is expected to complete by January 31st, subject to standard closing conditions.

Hanjie Xu, M Dream CEO, stated: "We are excited to be joining the Monstermob Group in order to leverage off the Group's geographic and revenue channel breadth and depth. In doing so we hope to exploit the true potential of what we have built since our foundation at M Dream. We look forward to working closely with Monstermob management at all levels of the organisation internationally in order to maximise our part in creating the leading independent mobile media company worldwide."

Monstermob made its first move into the Chinese market in 2005, with the acquisition of mobile ringtones and graphics provider, ATOP. The company has performed positively since the acquisition, consolidating its position as a top 3 player on China Mobile's WAP platform, Monternet. Monstermob intends to utilise the strengths of both acquisitions, through product and cross marketing and in localising M Dream's game library for other territories.