MILAN, Italy—Two European content firms are buying their way into the U.S. market.
Italy’s Dada Mobile Inc. said it will spend $7 million to acquire Upoc Networks Inc., a New York-based provider of community-based messaging services. Upoc reported a net loss of $1.9 million last year on $3.6 million in revenues, but has netted $900,000 in profits through June of this year, Dada said.
Upoc claims 3 million registered users who generate 2 million text messages a day. The 34-employee company is signing 50,000 new subscribers monthly, according to parent company Dada S.p.A.
“The acquisition of Upoc will enable (Dada) to benefit from some strategic assets—such as the direct contracts between Upoc and the major U.S. mobile carriers, a wide and consolidated consumer base and an organizational structure with highly skilled professionals—which could accelerate its expansion in the American consumer entertainment and community services market,” Dada said in a statement.
Meanwhile, U.K.-based Mobile Streams snapped up The Nickels Group, a California-based mobile production company, for an undisclosed sum. The move builds on an existing partnership that has produced several mobile content channels of urban music and a mobile reality series, “Paul Wall’s GRIT Boys.”
Mobile Streams hopes to distribute content from Nickels Group hip-hop artists across platforms including IPTV, video on demand and broadband. Nickels Group founders Jonas Hudson and Daryl Young will join Mobile Streams as senior vice presidents under terms of the deal.
“This deal will significantly strengthen our position in the large and attractive U.S. market as well as broaden our content offering in the popular urban music and media arena,” said Simon Buckingham, Mobile Streams’ chief executive officer.
