Wu Chunlei, general manager of Dragon Mobile, a wholly-owned affiliate of Shanghai Media Group, has told local media that his company is going to merge with SMG New Media, another affiliate of SMG.

Wu says after the merger, the new company may be called "Dragon New Media". He says that each of the parties has been seeking proper business patterns on their own, and this merger is mainly for business adjustment as both of them are running businesses related to mobile phones with mobile operators as their common partners.

As the company that won the first mobile television integration and operation license from the State Administration of Radio, Film and Television, Dragon Mobile has enjoyed a good reputation in the industry. In comparison, SMG New Media is less known to the public. The latter is mainly engaged in value-added and interactive services by relying on the rich resources of SMG.

With SARFT's issuance of the new mobile television standard, Dragon Mobile is now attracting more attention as the first license holder in the industry.