LAS VEGAS-Two new acquisitions highlight the potential of the wireless data market, as well as the growing valuations for the players involved.
First, wireless data mainstay InfoSpace Inc. announced it purchased mobile media company Moviso from Vivendi Universal Net USA for $25 million in cash. The deal creates one of the larger wireless content companies in the United States.
“Together, InfoSpace and Moviso will have a leading position in the exciting mobile media market,” said Kendra VanderMeulen, executive vice president of InfoSpace Mobile. “With expanded end-user reach and an extensive content library, we can offer compelling marketing and promotional opportunities to content brands and media companies, helping to get their content and applications quickly and easily into as many subscriber hands as possible. Carriers will benefit from expanded capabilities and accelerated availability of applications and content to drive their mobile data revenue streams.”
Both InfoSpace and Moviso work to develop wireless applications and services for wireless carriers. InfoSpace operates several carrier WAP portals, while Moviso has rapidly grown from a ring-tone provider to a content and technology company. Indeed, Moviso generated more than $3 million in revenue in the third quarter and is close to reaching break-even on an operating basis. The company recently announced expanded deals with Cingular Wireless L.L.C., Samsung Electronics Co. Ltd. and BMG. That InfoSpace paid $25 million for the company highlights the potential of the market.
InfoSpace combined with Moviso will compete against other companies including Ztango, Air2Web and others.
In a separate acquisition, mobile marketing company Enpocket announced it acquired the technology and intellectual property of early market leader SkyGo. Terms of the deal were not disclosed.
Started in 1999, SkyGo was one of the first companies to offer wireless marketing services. The company managed mobile marketing programs for ABC, ESPN, Visa, CompUSA and others.
Enpocket said it will add SkyGo’s technology base to its own offerings, which the company is selling in the United Kingdom and now in the United States. Further, Enpocket said it hired SkyGo founders Derek Proudion, Daren Tsui and Edwin Ho and will open an office in the San Francisco area.
“We are delighted to be bringing within Enpocket all that made SkyGo an early market leader,” said Jonathon Linner, Enpocket’s chief executive officer. “The SkyGo founders will significantly strengthen our team, while the SkyGo technology assets will help make the Enpocket Engine the most comprehensive and powerful technology platform in the marketplace.”
Enpocket competes against several wireless marketing companies, including M-Qube and others. The U.S. market has recently gained a major boost by the launch of common short codes and premium messaging services.
