ROK ends talks to buy mobile advertising based MVNO Xero Mobile
LONDON, BUSINESS WIRE — ROK Entertainment Group Inc. (ROK or “the Group”) (OTCBB:ROKE), the global mobile entertainment group, issues the following update regarding the exclusive talks it was conducting with Xero Mobile (Nasdaq:XRMB) (Xero or “the Company”) as announced by Xero on 1 October 2007.
ROK confirms that it has ended any dialogue with Xero and is no longer in talks to purchase the issued and to be issued entire share capital of the Company.
What we think?
This is not good news for Xero. I fear the days of the ad funded mvno are limited. On top of that there is gossip that ROK was going to be acquired and that has fallen through as well. Both of these are sending shivers down the backs of employees.
I just had a private chat and apparently ROK wanted to push all of its advertising on XERO but it had too much inventory which diluted pricing and the business model then wasn’t safe.
I will do some more digging. But I have written time and time again that its way too early for ad funded or sponsored mobile advertising MVNOs. The idea is great but it’s too early.
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