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Globe Telecom acquires content firm to improve services

MANILA, Philippines - Globe Telecom, Inc., the country's second largest cellular service firm, said it acquired a mobile content company which would allow it to offer more value-added services to its subscribers. In a disclosure to the Philippine Stock Exchange, Globe said it acquired Entertainment Gateway Group (EGG) and its affiliates for P351 million from shareholders of Entertainment Gateway Group (Phils.) and EGGstreme (Hong Kong). "This is an investment that blends Filipino creativity and technical skills from EGG with Globe's own experience in the mobile content space to create a more enjoyable experience for mobile users everywhere," Globe President and Chief Executive Gerardo Ablaza, Jr. said in the disclosure. EGG creates content such as music, chat, news and information, web-to-mobile messaging, and games. It exports content to Filipino communities in the US, Japan, the Middle East and Hong Kong. "We are also excited about the growth prospects of EGG in the overseas markets, and are looking forward to working with... EGG's management team to further expand the business," Ablaza said. Globe, a joint venture between Ayala Corp. and Singapore Telecom, has 21.3 million subscribers as of the end of the first quarter. It ranks next to cellular leader Smart Communications, which has over 30 million users. It is scheduled to announce its first half results on August 6. - GMANews.TV