KongZhong to become sole content provider for Microsoft in China
Wireless media company KongZhong Corp. (Nasdaq: KONG ) announced ahead of the bell Friday a cooperation agreement with Microsoft’s (Nasdaq: MSFT) MSN China to be the sole content provider in China for the information channel and mobile games channel of Mobile Messenger 3.0.
Mobile Messenger 3.0, which was officially launched today in China, is the mobile phone version of Microsoft’s instant-messaging application, Windows Live Messenger.
“This cooperation agreement is win-win for KongZhong and MSN China,” said KongZhong President Nick Yang. “We expect that greater dissemination of our services through Mobile Messenger 3.0, one of the leaders in its field, will bring increased traffic to Kong.net.”
The Beijing, China, company said it will pay MSN China a fixed fee per channel and that the cooperation period is for one year.
The EPS consensus of seven analysts surveyed by Thomson Financial for the current quarter, which ends this month, is $0.02 per share, compared with $0.21 per share for the same quarter last year. The EPS consensus of eight analysts surveyed by Thompson Financial is $0.12 per share for the fiscal year 2007 and $0.18 per share for fiscal year 2008.
Shares of KongZhong were up 5%, or $0.24, to $5.03 in mid-morning trading Friday.
