Question-and-Answer Session
Operator
(Operator Instructions) Our first question is from Jason Tsai, Montgomery & Company. Please go ahead.
Jason P. Tsai - Montgomery & Co.
Just a quick question here on the acquisition of your shares by the MNC company, what’s the expected use of proceeds for you guys? What are you guys looking to do to expand --
Michael Li
This is a very good question. The increase of the cash balance will enable aggressive execution and implementation of our cross-media strategy in China. Together, both with the partnership with MNC and Linktone, we should have an opportunity to pursuing the advertising and the WVAS cross-selling initiative, both in China as well as in other Asian countries.
Jason P. Tsai - Montgomery & Co.
So does this mean that you’ll also be more proactive in places like Indonesia as well now, and that accelerates the timeline for those type of issues?
Michael Li
In our view, with the partnership with MNC, we believe MNC is the existing current platform or expertise in the WVAS market in the Asian region will enable Linktone to establish a player for the Asian region, especially in the WVAS market.
Jason P. Tsai - Montgomery & Co.
Okay, great. Thanks a lot.
Operator
(Operator Instructions) Our next question is from Mike Olson with Piper Jaffray. Please go ahead.
Mike Olson - Piper Jaffray
I just had a quick question. It looks like the WVAS side is fairly stable. Are you expecting that to continue to be stable over the next few quarters, potentially actually starting to see growth there? And then maybe more importantly on the non-WVAS side, it looks like we are seeing good growth, albeit off of a small base, but still good growth in the non-WVAS side. What do you expect non-WVAS revenues could be maybe in 2008?
Michael Li
Relatively speaking, I think as far as the whole WVAS, the bottom more or less in the Q2 of this year and obviously we see a moderated growth back in Q3 and also based on the guidance, we still see the trend is flat to a moderate growth for WVAS. Looking forward, barring any major mobile policy changes, we will see a moderate growth in 2008.
As for the non-WVAS market, again Linktone has the exclusive advertising rights, as well as the involvement in certain content distribution. You are absolutely correct -- we start relatively small base. It is an investment year for us in 2007 and with the help and with the strategic investments, such as MNC, we believe we can establish, be a player in the China cross-media market.
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