December 15, 2005
 

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Motricity Acquires Leading Mobile Community Developer M7 Networks

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Motricity, a global provider of mobile content and solutions, has announced that it has acquired M7 Networks based in La Jolla, California, in order to continue building on its mission to accelerate the adoption of mobile content worldwide. M7 Networks is a recognized leader in advanced wireless services that connect wireless operators, content providers and end users around mobile content based communities, such as games and music. M7 Networks’ mobile community functionality includes many features such as loyalty programs, peer ratings and reviews, referrals, game leader boards, tournaments, buddy lists, and much more.

The addition of M7 Networks builds upon Motricity’s strategy of providing wireless operators, content providers, media companies, portals, and other partners the innovative and scalable mobile content and solutions they need to meet the personalized needs of their users and deliver highly compelling user experiences in ways that build customer satisfaction and brand loyalty.

For the last five years, M7 Networks has been an industry pioneer in the development and management of mobile content-based communities and other value-add services. Sprint, Cingular, Verizon Wireless, and Telecom New Zealand are among the leading wireless carriers relying on M7 Networks’ technology and services. The Game Lobby from Sprint is a prime example of a mobile community powered by M7 Networks.

Through mobile communities, wireless carriers can better track and understand users’ needs and interests, thus enabling them to improve the merchandising and marketing of their content based on data analytics derived from user activity in the communities. Furthermore, communities provide a strong forum for viral marketing, as they enable users to interact and share information with each other, just as they successfully do in the wired e-commerce world. Communities empower early adopters to evangelize and spur viral marketing within their communities.

“The influence of mobile communities is equivalent to that of the online communities surrounding eBay, Amazon or AOL. Communities are made up of individuals who are actively seeking additional information and recommendations on content and services,” said Ryan Wuerch, chairman and CEO of Motricity. “By creating and supporting mobile communities, we are helping wireless operators, content providers, media companies, portals and other partners accelerate adoption of new content through demand generated by user-to-user interactions. In fact, some of M7 Networks’ carrier partners have seen download rates of community-enabled content outpace non-community download rates by 2-3 times.”

“M7 Networks brings to Motricity an opportunity to expand our reach with wireless subscribers, strengthen key partnerships and create opportunities for new ones,” explained Wuerch. “The addition of mobile community and advanced e-commerce capabilities to Motricity’s proven Fuel mobile content delivery platform, will allow Motricity’s partners to reliably deliver a higher volume of valuable content to the right users. And, our business models, philosophies and cultures could not be better aligned.”

Carl Eibl, managing director of Enterprise Partners Venture Capital and Chairman of the Board of M7 said, “We are very pleased with the strategic potential represented by this transaction, Carriers need a single platform partner to mediate between content publishers and the global carrier network, and Motricity has developed the best global solution available today, as evidenced by the penetration success of their clients. M7 gives Motricity an additional powerful lever to further accelerate the adoption of mobile content through its market-leading mobile community services. This combination of strengths is unsurpassed in the mobile content industry today.”

The acquisition brings together two leading companies in the mobile content industry, both of which were featured among this year’s “Top 15 Global Wireless Companies” by FierceWireless, an internationally recognized publication covering the wireless and mobile Internet market.

Following the completion of the acquisition, M7 Networks will become a division of Motricity and will maintain an office in La Jolla, California, expanding the company’s West Coast presence as it continues to expand globally.



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