Nokia Growth Partners invests $6.8m in KongZhong
It's all about 3G rollout in China
The news is good for both sides: KongZhong needs funds, while Nokia is clearly eyeing China as a big growth opportunity, particularly as 3G networks roll out.
"I'm truly pleased to welcome Nokia Growth Partner's investment in KongZhong. As we prepare for 3G in the China mobile market, we are seeking to enhance our strong existing mobile operator channels with equally powerful non-operator channels," says KongZhong CEO and chairman Leilei Wang.
KongZhong already works with Nokia in China, including offering its games and community services to Nokia users in the region.
Mobile games are an increasingly important part of KongZhong's business - in its last quarterly results its revenues from mobile games grew 179 per cent year-on-year to $2.37 million.
The company expects mobile games to generate 20-25 per cent of its revenues this year.
"KongZhong is a premier mobile entertainment company," says Nokia Growth Partners managing partner Paul Asel. "Our investment reflects the belief in the leading role KongZhong can take as China embarks on 3G mobile services."