We had been hearing rumors about the imminent sale of Twistbox Entertainment, the mobile content spinoff from the mobile adult content player Waat Media. Turns out it is a reverse merger with the shell entity Mandalay Media, meaning Twistbox has gone public on the OTC board. The closing of the transaction is subject to certain conditions and expected to occur in Q1 of 2008. The current top management is expected to continue…CEO Ian Aaron previously served as the President of the TV Guide Television Group.

The spinoff from Waat was done in fall 2006, and Twistbox had raised about $32.5 million in funding since then, from Spark Capital, ValueAct Capital and including other strategic investors. More in the release.

• Twistbox Raises $19.5 Million; Ferguson Joins Board
• Waat and Charismatix Rebrand As Twistbox; Receives $12.75 Million Funding