US-based D2C firm New Motion is merging with mobile marketing agency Traffix.
The new partners are aiming to create a ‘vertically integrated mobile entertainment network. Currently, New Motion runs D2C channels such as MobileSidewalk, RingtoneChannel, Bid4Prizes and GatorArcade. Meanwhile Traffix provides digital marketing services to third parties, but also offers the mxFocos product, which develops and distributes mobile content for advertisers, marketers and brnads.Under the terms of the merger, Traffix shareholders will own 45 per cent of the combined company, New Motion shareholders the remaining 55 per cent.
Burton Katz, CEO of New Motion, said: “In working with Traffix during 2007, we realised the value a mature internet media company can add to efficiently growing a mobile entertainment business…we plan to expand through the introduction of new products as well as the continued penetration of our existing services domestically and internationally.”
Katz added that New Motion will continue actively seeking other potential acquisitions.
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