Buongiorno is set to enter the Chinese market with the purchase of eDongAsia, a Shanghai-based provider of SMS and content services.
The acquisition will be carried out by Buongiorno’s Hong subsidiary (a joint venture with Mitsui & Co). Buongiorno will buy 80 per cent of eDongAsia's share capital for around $2.7 million. The remaining percentage will stay under the current shareholders' control.For Buongiorno, it’s another key stage in an audacious international expansion programme. The company recently entered the Russian and Indian markets, and has formed partnerships in fast growing Asian markets like Vietnam, the Philippines, Thailand, and Malaysia. It is also among the drivers of the fast-evolving US off-portal market.
Entering the Chinese market will not be straightforward. Last year the government imposed tighter regulations on mobile content companies, which resulted in many casualties. However, the sheer potential of the market is too tempting to ignore. According to Chinese Industry Ministry's figures, there are 449 million subscribers – and 65 million more sign up every year.
Buongiorno's plans in China will be consistent with its approach elsewhere:offering B2B services for operators and large media groups while selling B2C services under the Blinko brand.
"The Chinese mobile content market is burgeoning and it represents a tremendous opportunity for global companies operating in the digital entertainment market, as Buongiorno. We therefore decided to cautiously enter the Chinese market by leveraging on a small-sized fast-growing entity in which our joint venture Buongiorno Hong Kong will invest in terms of know-how, people and capitals. This will allow our Group to seize the local challenging business opportunities without facing risks in the short term" said Andrea Casalini, CEO of Buongiorno SpA.
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