Porn and Sex Toy Vendor Gets Kinky Over Wireless
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Dildo dealer and porn purveyor, AdultShop.com, has agreed to acquire the Perth-based developer of Hutchison Three’s social networking service – Kink Kommunity.

The acquisition is part of a strategy for AdultShop.com to develop business outside its traditional adult-oriented content. In addition to its 3G mobile social networking product, Loop Wireless offers other content products, including mobile comics and mobile AFL products. The conditional agreement will in turn help Loop Wireless fast track its international expansion of Kink Kommunity in the US and European markets.

As reported by SmartOffice News yesterday, Kink chief executive Gavin Bullen is currently in London negotiating with Three UK to launch the service to Hutchison’s 4 million 3g mobile phone subscribers in the United Kingdom.

Kink Kommunity, announced as the Best Mobile/Wireless product at the Australian Interactive Media Industry Awards, has been available to users of Hutchison’s 3 network since October 2005. Users pay a monthly fee to access interactive, web-like content via their mobile phones, with much of the content generated by users themselves, such as photos, videos and commentary — all moderated by Loop Wireless.

By mid 2006 the company aims, in a world first, to join Australia and UK Kommunity members in an integrated and real-time social networking forum.

Terms of the acquisition, upon the satisfaction of certain conditions, will see Loop Wireless become a wholly owned subsidiary of AdultShop.com in return for the issue of 20 million ordinary shares in ASC and 80 million performance shares in ASC and the provision by ASC of $1.5 million for Loop Wireless working capital.

The 80 million performance shares will be converted into a maximum of 80 million ordinary shares in ASC over the next 2 years, subject to Loop Wireless achieving agreed performance hurdles.

“This acquisition will further allow Loop to bring our 3G mobile social networking product to a more global community,” said Loop Wireless’s CEO Gavin Bullen. “The expertise we have developed to moderate and produce the content, as well as understanding what works with our target audiences, will prove invaluable in expanding our offering beyond Australian users.”