Motricity Renews Contract With Second-Largest Customer
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Motricity has locked in Verizon Wireless—its second-largest customer—for at least two more years. The Bellevue, Wash.-based company, which raised about $60 million when it went public last month, said its contract with Verizon is now good until the summer of 2012, according to documents filed with the SEC. In 2009, Verizon’s business was worth 20 percent of Motricity’s overall revenues in contrast to AT&T’s contract worth 53 percent.
Parts of the company’s contract with AT&T (NYSE: T) are also up for expiration in mid-to-late 2010, but the company did not provide an update in the same filing.
SEE ALSO: Despite Price Cuts, Motricity’s Stock Drops On First Day
Currently, as part of Verizon’s contract, Motricity is hosting the carrier’s on-device portal and helping with other services including device profiling, editorial, search and advertising integration. In 2012, Verizon may extend the agreement for up to two additional one-year terms, which will renew automatically unless Verizon provides notice. After that, the term will be updated a year at a time until either company terminates the agreement.
Motricity’s stock fell 62 cents today, or 7.71 percent, to close at $7.42 a share.
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