Adultshop to buy Loop Wireless

Things will be getting hot and sweaty over at Loop Wireless following its proposed acquisition by porn purveyor, AdultShop.com.

Under the agreement Loop Wireless will become a wholly owned subsidiary of ASC in return for the issue of 20 million ordinary shares in ASC and 80 million performance shares in ASC, plus the provision by ASC of $1.5 million for Loop Wireless working capital.

The acquisition is part of AdultShop’s diversification into an area designed to titillate other senses – the international 3G content market.

In a statement Loop said the proposed acquisition also has the potential to take its 3G mobile social networking product, Kink Kommunity, to Europe and the United States.

A UK launch of Kink is now planned for April with the aim of joining Australian and UK Kommunity members in a real-time social networking forum by mid-year.

Loop Wireless CEO Gavin Bullen said in a statement that the ISPs acquisition was a calculated diversification of ASC's content business, from traditional adult-oriented content.

“There is very limited real estate on mobile phones, so we have to develop content in a very limited space," he said.