BEIJING, Dec. 6, 2011 /PRNewswire-Asia-FirstCall/ -- Linktone Ltd. (NASDAQ: LTON), a provider of media and entertainment content and services in key strategic markets in Asia, today announced that, on November 16, 2011, it purchased $5 million of PT Global Mediacom Tbk ("Global Mediacom") common stock through open market block trades on the Jakarta Stock Exchange at a price of IDR 950 (approximately US$0.106 based on the exchange rate at the time of purchase).
Based on the purchase price, this $5 million investment represents approximately 0.3% of Global Mediacom's outstanding shares. Prior to this investment, Linktone owned approximately 2.2% of the outstanding shares of Global Mediacom.
Mr. Hary Tanoesoedibjo, Executive Chairman and Chief Executive Officer of Linktone stated, "Linktone is committed to executing its growth strategy through product portfolio expansion and growth of its geographic footprint. Given our strong balance sheet and robust cash position, with over $92.8 million in cash, cash equivalents and short-term investments as of September 30, 2011, we are continuing to seek prudent investments with a goal of preserving capital while generating returns as we broaden the scope of our operations and position Linktone for sustainable growth. We believe Global Mediacom presents an opportunity to further bolster our balance sheet as we carry out our strategic and operational growth initiatives."
Global Mediacom is an affiliate of PT Media Nusantara Citra Tbk ("MNC Group"), the majority shareholder of Linktone. In addition to his position as Executive Chairman and Chief Executive Officer of Linktone, Mr. Tanoesoedibjo also serves as CEO of MNC Group. The purchase of Global Mediacom shares was approved by the Linktone Board of Directors, including the Company's independent director.