Interesting tie-up, though surprised why SonyBMG would go this route: it has tied up with Italian mobile content firm Dada to form a joint venture company in U.S. that would develop and market mobile and online content services. The U.S.-based venture, in which the two companies hold 50:50 stake and have invested an undisclosed amount, will be named Dada Entertainment, and will initially target U.S. customers. The new company will be led by the current CEO of Dada USA, Massimiliano Pellegrini, who will serve as the joint venture’s CEO. Dada last year bought Upoc’s mobile social networking service in U.S. as it pushed into the market stateside (Side note: Does this mean Dada has already given up on its other U.S. efforts, and decided to go this JV route?)

Dada will provide access to proprietary technology and billing platforms while Sony BMG will promote Dada hrough its multiple mobile and online distribution channels. Revenue for Dada will come primarily from subscriptions, advertising and pay-per-download services. Its friend$ program will offer another outlet, allowing users to earn money by sharing ad revenue generated on their community pages.

In fiscal year 2006 the business comprised by the two JV parts of the two partners recorded net revenues of $66.5 million and EITDA of $11.5 million, they said. The transaction is expected to close by the fourth quarter, subject to conditions including regulatory approvals and third-party consents. More details in release.