Linktone terminates contracts with its affiliates in China

Nasdaq-listed Linktone Ltd (LTON), a leading provider of mobile value-added services in China, has announced the termination of agreements with some of its Chinese affiliates with regard to a Qinghai Satellite TV (QSTV) cooperation deal, according to a report from Xinhua News.

The Shanghai-headquartered company has ended cooperation on QSTV with affiliated companies of Linktone, Shanghai Ling Yu Culture and Communication Ltd ( Ling Yu) and Beijing Lian Fei Wireless Communication Technology Co. (Lian Fei), and the Chinese Youth League Internet, Film and Television Center, from Jul. 1, 2008.

Linktone's impairment charge is expected to be US$6 million to US$7 million, which will be included in Linktone's second quarter financial results.

Linktone offers a wide range of services to wireless consumers and corporate customers, with a particular focus on media, entertainment and communications.

In the first quarter of 2008, Linktone's revenues were US$20.5 million, up from US$14.2 million in the same period last year.