YOU On Demand Holdings, Inc. (NASDAQ: YOD), a video-on-demand service provider in China has agreed to form a joint venture with Megtron Hong Kong Investment Group an investment company in the telecom market with the intent of operating and marketing mobile apps from YOU On Demand, on smartphones and other mobile devices, the company said.
Under the terms of the joint venture (JV) agreement, Megtron, who through its affiliates has already delivered over 50 million smartphones worldwide, will leverage its industry relationships with global telecom operators and smartphone manufacturers to support the JVC, by targeting app placement and installation on between 50-100 million smartphones and other mobile devices globally, through pre-installation, online & offline promotion installation and several app distribution channels.
Under the terms of the JV Agreement, the JVC will have registered capital of USD10 million, which YOD and Megtron will contribute USD5.0 million, to be paid in installments. The first installment of RMB5.0 million (USD760,000) will be paid within one month of the date of incorporation of the JVC. Both YOU On Demand and Megtron, through the JVC, will jointly share app operating expenses, including server, CDN and bandwidth costs.
YOU On Demand Holdings, Inc. is a mobile-driven, consumer management platform for video on demand., evolving into a B2B2C, mobile-driven, consumer management platform for both enterprises and consumers.
whose affiliate companies have rich resources and distribution channels in the Asian mobile terminal ODM (original design manufacturer) and telecom market