Zingy, the mobile ringtones and content company, has been going through a lot of changes recently, and is now on the block, MocoNews.net has learned. The investment bankers are hawking it to potential buyers, though not sure if a deal is nearing.
This comes after founder-CEO Fabrice Grinda left late last year, following disagrement over the future direction of the company. Andy Volanakis, former COO, is now the CEO of the company. Zingy recently absorbed sister company Vindigo too (see related links below), and has been doing well financially, at least according to figures from the company. As this Forbes.com story says, Zongy will gross $60 million by the end of 2005—double its 2004 revenue of $30 million. (So it could be a $200 million range acquisition, it seems, depending on profitability numbers and other things, of course.)
But the parent company For-Side, the Japanese mobile content company, has been in somewhat of a retreat mode after its slate of U.S. acquisitions turned out to be lemons. One of its acquired (or to-be-acquired companies), music recognition firm 411-Song (formerly Musikube), opted out of the buyout after troubles with For-Side management, MocoNews.net has also learned.
Now it seems For-Side wants out of U.S. and Zingy’s potential sale is a step in that direction.
On a slight tangent, that’s similar to the experience of another Japanese mobile content biggie Index Corp too, which made some foolish stateside acquisitions (like Mobliss) and is now rethinking its U.S. strategy. The only other Japanese company, Cybird, is doing well with its Airborne acquisition.
Related:
— Zingy Founder & CEO Steps Down
— Zingy Absorbing Sister Company Vindigo
— Vindigo Founder/CEO Leaves; For-Side’s Offering May Come October
— For-Side’s U.S. Companies To Go Public