InfoSpace to continue powering AT&T’s MEdia Net

InfoSpace Inc. got some good news-a rarity lately-as AT&T Inc. said the buffeted company will continue to power the carrier’s MEdia Net service.
The agreement renews a pact struck in 2003, when InfoSpace began offering mobile e-mail access, messaging, games, ringtones and other content to subscribers of Cingular Wireless L.L.C., which recently rebranded as AT&T.
“We’re seeing an explosion of mobile services in the market, and forward-thinking carriers like AT&T are starting to capitalize on the opportunity to offer customers a more streamlined, relevant and personalized user experience,” said Steve Elfman, executive vice president of InfoSpace’s mobile business unit. “AT&T has definitely been at the forefront of this movement and we look forward to expanding our longtime partnership as consumer demand continues to grow.”
InfoSpace lost $12.7 million last year, a drastic downturn from a net income of $159 million posted in 2005, and is facing a $100 million lawsuit from EMI in a ringtone-licensing dispute. The company last month was challenged by a major shareholder looking to nominate three independent candidates for election to the company’s board of directors; the shareholder also asked InfoSpace to immediately return $300 million in cash to shareholders.
Shares of InfoSpace were effectively unchanged following AT&T’s announcement.