STAMFORD, Conn.-I3 Mobile Inc. announced it will shut down its Pronto voice-activated information and content service and will continue to search for a potential strategic alliance, joint venture, merger or acquisition, or possible sale of the company. The company said it is in negotiations for a potential transaction, but nothing has yet been signed.
Further, the company announced that, in light of its new direction, John Lack, president and chief executive officer, left the company to pursue other interests. William Grimes, i3 Mobile’s chairman of the board, will assume the additional responsibilities on an interim basis.
I3 Mobile is struggling to stay afloat. The company recently cut its work force and hired investment-banking firm Kaufman Bros. L.P. to assist in looking for strategic alliances. The company warned that if no deals go through it will pursue other alternatives, such as the liquidation of its assets.
“We are optimistic about the opportunities presented by the potential transaction currently under discussion, but we recognize the hurdles associated with bringing it to closure,” Grimes said. “We continue to believe that there will be a demand for premium content services for wireless consumers similar to those offered through Pronto, and are encouraged that a strategic transaction, such as the one we are currently pursuing, may in the future assist us in relaunching the Pronto platform and leveraging the assets and technology we developed.”
I3 Mobile in late 2001 introduced its Pronto services in the Hartford/New Haven, Conn., area. Using the company’s Pronto service, i3 Mobile customers were able to ask questions-“When does the movie start?” or “What will the weather be like tomorrow?'”-and receive text or audio answers. The company described the service as a flat menu, not one users had to click through to get information. It was initially priced at $15 per month.
The company said in September it had about 2,800 paying Pronto subscribers, down from 3,400 subscribers in June of last year.
