New Motion completes transaction with Traffix

Mumbai: New Motion has announced today it has completed its transaction with Traffix, pursuant to the merger agreement between the companies dated 26 September, 2007. As a result of the closing of the transaction, Traffix became a wholly owned subsidiary of New Motion.
 
Immediately following the consummation of the merger, Traffix stockholders will own approximately 45% of the capital stock of New Motion, on a fully-diluted basis. Each issued and outstanding share of Traffix common stock was converted into the right to receive approximately 0.676 shares of New Motion common stock based on the capitalization of both companies on the closing date of the merger.
 
Effective immediately, New Motion will commence trading on The NASDAQ Global Market under the symbol NWMO and Traffix will cease to be traded as an independent company on the NASDAQ Global Market.
 
Both Traffix and New Motion maintain websites and other valuable digital content that provide a high quality online user experience for each company’s respective users and subscribers. New Motion’s current content is organized into four strategic services – digital music, casual games, sweepstakes, and community and lifestyle. Traffix’s current content includes lifestyle and consumer interest content, music downloads, games and sweepstake contests.
 
Management of both companies believe that combining this content into a single combined company portfolio will yield benefits to the combined company, including improving the overall quantity and quality of content accessed by users and subscribers, which should lead to longer subscription terms and a more attractive customer value proposition. These benefits are expected to inure to the stockholders of the combined company through improvements in the combined company’s competitive position vis-à-vis its competitors and a greater level of revenues and higher profitability than each entity would have as a standalone company.
 
“This transaction combines two highly complementary companies into a digital advertising and entertainment network. We are now able to further leverage the growing convergence trend between the online and wireless mediums,” said New Motion chief executive officer Burton Katz. “Our advantage – similar to traditional media companies – lies in our proven business model where we efficiently monetize consumer audiences with both direct billing and third party advertising. The chemistry that the combined team has already established only furthers my excitement for the new company.”
Traffix, including its subsidiaries, maintains offices in the United States and Canada. The combined company will be headquartered in New York, NY. In the coming weeks, a new web site will be available on the newly merged company.

Comments

comments