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Motricity Outlines Plan Following InfoSpace Mobile Purchase
(Wireless News Via Thomson Dialog NewsEdge)
Motricity, a provider of mobile content infrastructure services, has
outlined the company's strategic operating plan following the
acquisition of InfoSpace Mobile.
"Historically, Motricity has been involved in several areas of mobile
content," said Ryan Wuerch, chairman and CEO. "The InfoSpace
acquisition gave us the opportunity to refine the focus of our
organization on areas where we have the strongest market position and
are seeing the fastest growth today. Moving forward, our strategy will
be aligned with our core business of providing mobile content
infrastructure services enabling consumers to discover content inside
and outside the walled garden. These services include powering portals,
storefronts, managed web and search for mobile operators along with
messaging gateway services for all customers needing a mobile solution."
As part of this, Motricity will discontinue non-profitable and non-core
businesses including the planned divestiture of its direct to consumer
property, Pocketgear.com. In December, Motricity announced the sale of
another direct to consumer property, eReader.com, to Fictionwise. The
company will also be divesting certain business relationships in the
media and entertainment arena.
In an effort to maximize the company's focus on the needs of customers
and drive efficiency through the organization, Motricity is optimizing
its technology, processes and product set and will migrate customers
from the Fuel platform to the mCore platform for Portal, Storefront,
Search, Messaging and Managed Web products. Key elements from Fuel will
be integrated into mCore to ensure that customers receive the best of
both products. The Gateway business will remain the same. In addition,
the company is consolidating office locations, moving the corporate
headquarters location from Durham, NC, to Bellevue, WA, which is in
close proximity to some of Motricity's largest customers.
The company expects to reduce the workforce by approximately 250
positions over the next nine months. All affected employees will be
offered severance packages and outplacement services.
Wuerch added, "The steps we're taking to quickly integrate the two
companies will position us very well for accelerated growth, while
offering greater discipline and a more focused approach for our
customers. While these decisions are always tough, we're doing what is
necessary to position Motricity for long-term and profitable growth."
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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