SEATTLE—Dijji Corp., formerly known as Dwango Wireless, is closing its doors, according to documents filed this week with the U.S. Securities and Exchange Commission.
“It is in the best interests of the company, its creditors and stockholders that the company cease operations and commence an orderly liquidation and winding up,” the company said in the 8-K form.
Dijji rebranded in December after losing $15 million during the first three quarters of 2005 due largely to a portfolio of expensive—and impressive—licenses. The company publishes content from ESPN, Napster and Rolling Stone, and has powered a text-messaging sweepstakes for USA Today.
But while it managed to generate $3.5 million in revenue last year, the company couldn’t keep pace with its intellectual property costs and bloated payroll. After laying off 30 percent of its work force in September and an additional 27 percent in December, Dijji ended up with fewer than three dozen employees.
Executives had hoped to save the company with a reverse merger with New Motion Inc., a direct-to-consumer content provider. Dijji’s fate was sealed when the deal fell through, however.
