Strategic Partnership Formed Between Sky-mobi Ltd. (MOBI) and Leading Chinese Portal Tencent

QualityStocks would like to highlight Sky-mobi Limited (NASDAQ: MOBI). The company operates the leading mobile application store in China. Sky-mobi works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with high quality applications and content titles. Users of the Maopao store can browse, download, and purchase a wide range of applications and content such as single-player games, mobile music, and books.

In the company’s news yesterday,

Sky-mobi Ltd. announced that it has formed a strategic partnership with Tencent. This company is China’s leading internet portal and it also has China’s most popular instant messaging service – QQ.

This partnership is designed to promote Tencent’s QQ Mobile Browser on Sky-mobi’s Maopao mobile application store and make Sky-mobi a preferred partner for a series of Tencent’s mobile software, including mobile security software and Tencent miniblog. Sky-mobi’s agreement with Tencent is also another step in establishing Maopao as the leading application store in China.

Under the terms of the agreement, Tencent will pay Sky-mobi a commission for each of its users that become an active Tencent QQ Mobile Browser user. The partnership should make a meaningful contribution to the company’s financial results in the quarters ahead, driven by Sky-mobi’s large user base.

The company’s Maopao store is already accessed by hundreds of millions of Chinese mobile phone users and includes a variety of utilities, games and other entertainment options. The store offers a large number of applications and content titles that extend the usability of low-to-mid range mobile phones. It does this by giving these phones many of the capabilities of more expensive smartphones.

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