New Motion and Traffix merge for digital content
New Motion Inc. and Traffix Inc. have completed a merger they announced in September, creating a company that aims to provide digital content and ads to consumers via the web and mobile phones.
Traffix becomes a subsidiary of New Motion, and the combined company will be based in New York. Traffix shareholders receive 45% of the stock in the new company and New Motion shareholders the rest.
New Motion’s properties include mobile entertainment portal MobileSidewalk, mobile storefront RingtoneChannel and mobile auction game Bid4Prizes. Traffix provides ad-serving technology and consumer-oriented content, including games and music.
“This transaction combines two highly complementary companies into a digital advertising and entertainment network. We are now able to further leverage the growing convergence trend between the online and wireless mediums,” says Burton Katz, chief executive officer of New Motion. “Our advantage—similar to traditional media companies—lies in our proven business model where we efficiently monetize consumer audiences with both direct billing and third-party advertising.”
The companies had previously announced that Andrew Stollman, president of Traffix, would become president of the combined company. Jeffrey L. Schwartz, CEO and chairman of Traffix, will serve as a consultant.
In announcing the deal in September, the two companies projected 2008 revenue for the combined entity of $145 million to $160 million if the merger could be completed by the end of 2007.
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