After a relatively quick two months of negotiation, Temasek Capital, part of Singapore's investment holding company, Temasek Holdings, announced the cash investment on Thursday (Nov 22). Temasek chose Linktone because it was a stable company that could offer wireless data services to its other investments, Temasek officials said.

"This investment in Linktone, with its innovative technology, strong management team and extensive local experience, will provide a good platform for Temasek Capital to gain entry into China's wireless-telecommunications sector," Temasek Capital chief executive Tan Soo Nan said.

"At the appropriate time, we will explore opportunities to connect Linktone with Temasek group companies, as well as our other portfolio companies operating in the wireless space."

Temasek chose Linktone for its work with China Mobile and China Unicom, the two major mainland mobile players.

Temasek official Eva Ho said Linktone's technology and contacts might help Temasek's other investments, which include Singapore-based telecom companies and are worth about S$70 billion, or 20 per cent of the country's stock market.

Linktone already has a Singapore connection. In September it began selling content to Singapore phone provider Virgin Mobile. In China, Linktone partners offer short messages, wireless chat services and a quiz game.

More than one million people have used its services.

Chief executive Nick Zhang said Linktone had not profited, but revenues pointed towards the black.

"Mobile data is suffering a winter time, and the one dry spot is wireless data services," Mr Zhang said.

He said the Temasek deal reflected Linktone's performance and called it a "strategic investment for the future".

Earlier this year, Linktone was awarded one of the mainland's first Internet content provision licences by the Ministry of Information Industry.