GSK Sales Plunge Amid Bribery Probe
GlaxoSmithKline Plc (NYSE: GSK) said its sales in China has dropped 30% from a year earlier since the Chinese government began a bribery investigation into it in June. The falling sales came as Chinese doctors declined to meet GSK salespersons and as GSK scaled back its promotion campaign in the country, the British pharmaceutical giant said, without revealing details. GSK was accused of giving as much as 3 billion yuan to Chinese travel agencies to fund trips for medical doctors, and the drug maker later admitted to wrongdoings by some of its executives in China. China accounted for only 3.6% of GSK's revenue last year, but is viewed as a very promising market for the company.
Suning Set to Acquire PPTV for $400 Million
Suning Commerce Group Co (SHE: 002024), China's largest consumer electronics retailer by revenue, is close to striking a deal of the acquisition of PPTV.com for $400 million, BiaNews reported. Both parties declined to comment. Rumors about Suning taking over the video site first surfaced in June and they have been reportedly in continual talks for the deal. It was also reported that PPTV had approached a number of prospective buyers, including Sohu.com Inc (Nasdaq: SOHU) and Alibaba Group Holding Ltd. Cash-strapped PPTV currently owes more than 200 million yuan to banks, and its founder has repeatedly said it was seeking a partner for capital injection. Experts say Suning wants to use PPTV as a springboard to the mobile Internet market.
China Unicom Partners with iFeng Video
Phoenix New Media Ltd (NYSE: FENG), a Chinese TV and online media, said its video portal V.ifeng.com has sealed a deal with China Unicom Ltd (NYSE: CHU, HKG: 0762, SHA: 600050) to offer a mobile video service package. Under the terms, China Unicom users can watch up to 6 gigabits of iFeng Video's exclusive mobile content for 15 yuan per month. China Unicom signed a similar deal with Sohu.com Inc's video services in April.
Bestv, Microsoft to Set Up Entertainment JV
Bestv New Media Co (SHA: 600637) said it plans to work with Microsoft Corp (Nasdaq: MSFT) to jointly invest $79 million registering an entertainment company in the Shanghai Free Trade Zone, which is expected to be established in October. Bestv will hold a 51% stake in the new company and Microsoft the remaining 49%. The joint venture will offer world class digital entertainment services to households in Shanghai, according to Bestv and Microsoft.
China Mobile Adds 3G Users
China Mobile Ltd (NYSE: CHL, HKG: 0941) said the number of its 3G service users increased by 11.64 million in August, up 268% year on year and up 27% month on month, and the number of its 2G service users decreased by 6.19 million, resulting in the number of total customers increasing by 5.45 million, which was up 13.3% month on month. China Telecom Corp (NYSE: CHA, HKG: 0728) said the number of its 3G service users increased by 3 million in August, up 14% year on year and down 2% month on month, and the number of its 2G service users decreased by 950,000. The month on month drop is attributed to few subsidies on new iPhone launches.
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