Hong Kong - Hong Kong-based digital media firm TOM Group announced on Monday that it will pay about $200 million to take its TOM Online mobile content distribution arm private.

TOM Group currently holds a 66% stake in TOM Online, and will finance the purchase of the rest of the unit's outstanding shares with loans from financial institutions.

"TOM is of the view that the short- and medium-term volatility and potential uncertain financial performance for TOM Online make TOM Online poorly suited to remain a publicly listed entity," the company said in a statement.

China's largest mobile operators recently took steps aimed at improving mobile operating standards, such as making terms for subscription-based content more friendly to consumers -- which negatively affected TOM Online's share price.

Related Links:
http://biz.yahoo.com/ap/070312/hong_kong_tom_online_buyout.html (AP)

http://quote.bloomberg.com/apps/news?pid=20601087&sid=amOpAxNTiz0k

http://ir.tom.com