After picking up 20% in Spice Digital*, chipset manufacturer MediaTekit has made an undisclosed investment in mobile VAS startup MoMagic. The LinkedIn profile of MoMagic CEO Arun Gupta states that "MoMagic is a MediaTek Inc invested company." We'd heard rumors about this investment from sources, and on being contacted by MediaNama, MediaTek declined to comment beyond the vague press release (below), on the nature of the arrangement between MediaTek and MoMagic, or even on what exactly MoMagic does. It's worth noting that Gupta was previously a Director at MediaTek's India operations, and essentially heading its India business. So he knows MediaTek, its requirements and the MediaTek OS plans well. Also, being in the same building (see this and this), would help the companies work closely together. From what we've learned from industry sources, MoMagic has the mandate of creating mobile applications for MediaTek's platform, especially given an increase in adoption of the Android platform by local low-cost-handset manufacturers in India, which are key buyers for the MediaTek chipsets. This explains MediaTek's investment in Spice Digital, as well as the global tie-up with Yahoo, both defensive moves. A statement on MoMagic's website reads "MoMagic works with MediaTek Inc to make MRE (MAUI Runtime Environment) platform accessible for Content Providing community. Any Content Developer who would like to develop MRE applications, we offer them all required technical and professional support and also provide them a platform to monetize their innovative content." * Disclosure: Spice Digital is an advertiser with MediaNama Press Release MoMagic…
