Sky-mobi Ltd (ADR) (NASDAQ:MOBI) Ties Up With China Unicom
Sky-mobi Ltd (ADR) (NASDAQ:MOBI) which is a diversified communication services provider in China reported earlier this week that it has tied up with Wo Store Of China Unicom, as per the terms of which its fully owned subsidiary Mopin Technolgy Co., Ltd. would be working hand in hand with China’s second largest mobile services provider to push more of its mobile apps into the market. The deal involves the Hangzhou based firm being treated as a official business partner for China Unicom and would be asked to offer customized software solutions to meet the needs of the telecom operators physical stores and online network.
Analysts Show Thumbs Up
Citron Research displayed its full throated backing to the proposed deal by taking to micro-blogging site Twitter to comment that “$MOBI staying long…not selling, we should see higher. Too much blue sky too little market cap, they have turned a corner.”
Win Win Deal
The tie up is expected to prove to be a Win –Win Proposition to both companies. While the telecom operator can work towards addressing its customer support concerns around online shopping, the app maker gets a captive market for its newer apps.
Synergies To Be Leveraged
Expressing his happiness while explaining the synergies that could be derived by the proper execution of this strategic partnership, Sky-mobi Ltd (ADR) (NASDAQ:MOBI) Chairman and Chief Executive Officer Michael Tao Song has been quoted to have said that, “We have been arduously working on this project since 2010 when we found through customer feedback that customers visiting the operator’s physical stores expected more than just assistance with choosing and purchasing a new phone. Rather our insights suggested they expect much more on the in-store service front, such as receiving advice on how to use smartphone applications effectively and smartly”.