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Motricity buys M7 Networks to build wireless communities

Wireless content and technology provider Motricity Inc. has put some of it investment capital to work, acquiring mobile virtual community builder M7 Networks Inc.

Terms of the deal were not disclosed.

M7 Networks has made headway powering content-based mobile virtual communities such as the Game Lobby from Sprint PCS, which allows gamers to recommend titles, post high scores and challenge other players. The company also has inked partnerships with Cingular Wireless L.L.C., Verizon Wireless and Telecom New Zealand.

Motricity, which offers content-delivery technology and acts as a content aggregator, recently closed a $30 million round of financing and announced a separate $27 million round last October. The company has raised a total of $80 million in funding.

M7 Networks was founded in 2000 with funding from Enterprise Partners, Qualcomm Inc. and Sienna Ventures. The company will maintain its office in La Jolla, Calif. William Erickson, M7 co-founder and chief executive officer, will step down once the deal closes, Motricity said. David Buckley, M7’s chief technology officer, will manage the La Jolla office.

Ryan Wuerch, Motricity’s CEO, said the acquisition is in line with the company’s goal of building massive wireless communities to fuel download revenues.

“The influence of mobile communities is equivalent to that of the online communities surrounding eBay, Amazon or AOL,” Wuerch said. “By creating and supporting mobile communities, we are helping wireless operators, content providers, media companies, portals and other partners accelerate adoption of new content through demand generated by user-to-user interactions. … And our business models, philosophies and cultures could not be better aligned.”

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