Geos Communications Inc., Texas-based developer and distributor of mobile applications and services, announced today that it has acquired China’s leading mobile content retail provider, a company called Duo Guo.
Shanghai-based Duo Guo operates a rapidly growing number of kiosks, currently 75 in 15 cities across China, allowing mobile device users in China to discover and download games, music, ringtones, movies, and other mobile applications, in addition to getting event tickets, coupons, and advertising. It’s the only legitimate retail channel for licensed mobile content in China, and includes partnerships with Walmart, Paramount Pictures, Cartoon Network, Warner Music Group, and others. The acquisition gives Geos a huge new platform for distributing their content, significantly expanding their global presence to the Chinese market.
Jonathan Serbin, who will remain the CEO of Duo Guo, and will also lead a new entity to be based in Shanghai as a holding company for Asian operations, commented on the acquisition by Geos. “There is huge demand in China for the ability to purchase mobile content such as software, games and other multimedia entertainment. As the only company of our kind we hold significant competitive advantage in this market with considerable barriers to entry. The completion of this business combination represents an exciting opportunity for Geos to emerge as a leader in the rapidly growing global mobile distribution industry, and for Duo Guo to expand our already successful business.”
Geos CEO, Andy Berman, spoke of the significance of the acquisition to Geos. “This acquisition establishes our presence as a leading distributor of mobile content in the world’s largest mobile communications market. Duo Guo’s cost efficient, profitable and highly scalable retail model also provides Geos with a new, built-in revenue stream. In China there are over 700 million subscribers, mobile content and applications are exploding and with limited regular internet access it’s becoming increasingly difficult for users to navigate to and implement the content they really want. We believe that Duo Guo’s engaging format solves this problem by placing relevant content and a knowledgeable associate in areas that are convenient to consumers. Additionally, we can now manage 100% of the content available on China’s major mobile retail platform, which allows us the opportunity to cross pollinate with marketing efforts for each of our innovative applications and technologies.”