CDC Mobile announced it has entered into a letter of intent to make a strategic investment in BBMF Group Inc, a leading 3G content provider in Japan. This will be the first of CDC Mobile’s targeted investments through its recently announced US$100 million 3G Content Partner Program designed to provide first-mover advantage in the anticipated 3G content market in China. Under the letter of intent, CDC Mobile intend to invest US$20 million in convertible bonds issued by BBMF Group Inc. and the two companies would form a strategic alliance in operations to jointly target 3G markets in Japan and China.
Headquartered in Tokyo, BBMF Group Inc. is considered a market leader in 3G content in Japan with one of the largest mobile comic site and mobile online game site in Japan and one of the largest library and fastest growing number of files and titles available for download on any carrier. The company has licensed the right to publish mobile versions of over 1,300 comic titles by 470 authors. BBMF was ranked the Number One site in the Comic/Novel/Photo Book category in 2006 and won the award for best comic site as voted by the subscribers of KDDI, the second largest carrier in Japan with 27 million mobile subscribers, 25 million of which are 3G mobile subscribers. The company has recently been experiencing significant growth with 30 to 40 percent month- over-month sales growth during Q3 and Q4 of 2006. Based upon revenues in December 2006, BBMF’s annualized revenues would be approximately US$20 million with gross margins of over 60%, and revenues are anticipated to grow significantly in 2007. The company has more than 620 total employees with 120 workers in Tokyo and the remainder located in offices in Nanjing, Hong Kong and Taiwan. Continue>>