LaNetro Zed backs out of MonsterMob deal

Spanish mobile content giant LaNetro Zed scratched its plans to make a bid for buffeted ringtone provider MonsterMob Group plc.
LaNetro said late last week that it would spend $66 million to pick up a 53-percent stake in MonsterMob, which operates ringtone storefronts in Europe, Asia and the United States. But shares of Monstermob dipped Wednesday after the companies said the deal had been scratched.
“LaNetro today announces that it no longer intends to make an offer for MonsterMob,” the companies said in a prepared statement.
The announcement appears to cap a tough year for MonsterMob, which has seen its shares fall steadily amid profit warnings and a front-office shakeup. The company’s stock plummeted more than 20 percent in June as MonsterMob lowered forecasts and ousted CEO Martin Higginson, and its value crumbled from more than $150 million to $58 million in July as new, state-imposed regulations for mobile-phone content threatened revenues in the booming Chinese market.