News Corp is to buy Crazy Frog-owning D2C giant Jamba for $188 million and combine it with Fox Mobile Entertainment.
The acquisition marks another dramatic plunge into new media for News Corp having moved for MySpace last year. The new company will capitalise on the consumer reach of the Jamba brand (it will stay as Jamster in the US), which is now active in 30 territories, and the multi-media savvy of Rupert Murdoch’s global empire. Lucy Hood, president of Fox Mobile Entertainment, will become CEO of the joint venture.Jamba has been a controversial company. It has saturated the TV all over the world with ads, originated the Crazy Frog and been accused of mis-selling ringtone subscriptions. As a result, the company’s revenues have dipped this year and rumours have abounded that its parent, Verisign, wanted to sell it. Now, it has. Fox will own 51 per cent when the deal goes through.
Whatever its previous dramas, Germany-based Jamba is undoubtedly the world’s biggest and most successful consumer brand in mobile content. Fox clearly recognises this – and will no doubt use this to exploit the fast growing off-portal market in the US and the mobile potential of its own key brands such as The Simpsons and 24.
Peter Chernin, News Corp’s CEO, said: “Wireless technology gives us an enormous opportunity to reach billions of mobile phone users with our content. With this new venture we’re looking forward to inventing new and compelling ways to engage this exciting new audience.”
Fox has already indicated that it will make Jamba the storefront for MySpace mobile downloads and the exclusive outlet for Yellow Plan, a subscription-based content service offering The Simpsons wallpapers, screensavers, ringtones and video.
Advertisement
