Globe Telecom in the Philippines said it has agreed to sell a major stake of its mobile content unit Yondu to local listed Xurpas, in a move to strengthen both companies’ influence in the digital content market.
Under the agreement, announced on Tuesday, Xurpas is investing 900 million pesos ($19.3 million) to acquire a 51% stake in Yondu.
Yondu, which was established in 2001 by Globe Telecom, develops mobile content, and provides mobile and information technology services.
The acquisition “solidifies their partnership in the internet and digital space”, the companies said in a joint statement.
Globe Telecom and Xurpas said they will transform Yondu into a regional arm for digital content distribution and other technology-driven services.
Globe president and CEO Ernest Cu said the strategic alliance is in line with the operator's array of partnerships with leading digital players to promulgate the Filipino digital lifestyle.
"Globe is very excited to be partnering with Xurpas in taking Yondu to the next level,” Cu said.
“Over the past few years, we have built the company into a great platform for media and content innovation and it is time to bring our aspirations regional.”
Following the company's highly successful initial public offering in 2014, Xurpas has expanded regionally, acquiring and investing in various content and distribution companies to expand its digital footprint across Southeast Asia.
"Globe Telecom has been our strongest partner in the Philippines and the investment into Yondu stengthens our joint capabilities to bring world class digital products to the global audience" Xurpas CEO Nix Nolledo said.
The acquisition of a majority stake in Yondu will spur Xurpas’ continued expansion beyond the Philippines, Nolledo added.