InfoSpace to sell mobile services business for USD 135 million to Motricity

Rating: we knew it!

This rumour broke about three weeks ago but it was hidden by the sale of the InfoSpace Directory unit for USD 225 million. But now it appears to be true -
InfoSpace is to sell its mobile services division to Motricity for USD 135 million in cash.

First thought – what a shame.
Second thought – it was to be expected after the dismal year last year and the fierce competition in the market for mobile search and services.
Third thought – USD 135 million sounds cheap for mCore – including business with Verizon and Virgin.
Well I think this is a surprise for InfoSpace employees who have been left slightly in the dark and only a few weeks ago EU head of InfoSpace Mobile George Fraser said that InfoSpace search was on the up and up.

I suppose that it can still be on the up and up moving forward under the Motricity banner.

So what about the competitive angle?
To be honest this is great news for competitors in mobile as there are about six open RFQ’s in Europe that InfoSpace might not be as agile with as competitors because of this move. Also the head count uncertainty is looming and this will not either company any favours.

So what is left of InfoSpace?
I am not sure on InfoSpace FindIt in this press release it seems as though InfoSpace still has it. But in the original sale of the directory business I thought InfoSpace Find It has been bundled into it? I will ask and let you know. But today InfoSpace is a metasearch company with two key brands Dogpile and Zoo.