Neomedia, the mobile marketing firm that has bought 5-6 startups in the space in the last year, gets deconstructed in this story. NeoMedia purchased Mobot for $10 million; 12snap for $22 million; Gavitec for $7.2 million; and Sponge for $17.4 million (and an extra $4.4 million if two-year earnings targets are met). It also signed a letter of intent to acquire HipCricket for $4.5 million. That’s some $60 million from a company that posted only $2.2 million in sales last year and lost $9.1 million. NeoMedia has lost money every year since its IPO in 1996, according to SEC documents. Its stock stands at about 20 cents a share, compared with its original $6. NeoMedia’s Q1 revenue, however, nearly tripled to $2.1 million, primarily as a result of those acquisitions.
Then some other strange goings at the company: in its latest annual report, its accounting firm raised “substantial doubt about its ability to continue as a going concern.” The board’s audit committee does not have a financial expert “due to financial constraints,” the company said.
Anyway, we’ll be on this so keep reading.