In a continuation of its media-comms strategy, Telstra has acquired a 67 percent interest in both China M and Sharp Point.
China M is a leading supplier of consumer mobile content serving 350,000 customers daily, while Sharp Point provides technical services for China Mobile's rapidly growing central mobile music platform.
Sol Trujillo, CEO of Telstra, said, the terms of the deal is attractive to all parties and Telstra will fund the acquisitions from existing cash facilities.
As I said last August, we expect Telstra's Chinese online and content businesses to generate $1 billion of revenues within five years, generating strong returns," he said.
"We also believe that pro forma revenues from China M and Sharp Point for fiscal 2009 will be around $100 million.
"Both businesses are EBITDA and EBIT positive, and we expect the acquisitions to be earnings-per-share accretive from 2010."
China has around twice as many mobile subscribers as any other nation - and penetration is only about 50 percent at this stage.
Since 2006 Telstra has purchased majority interests in SouFun, China's number one real estate website; Norstar Media, operator of popular Chinese auto and digital device sites Che168.com and IT168.com; and Autohome/PCPop, operator of one of the country's leading automotive online sales site Autohome.com.cn and popular digital device site PCPop.com.
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