9 Comments

Summary:

Verisign is selling off its last remaining non-core mobile business, mQube, to mobile messaging company Mobile Messenger, for an undisclosed…

Mobilemessenger

Verisign is selling off its last remaining non-core mobile business, mQube, to mobile messaging company Mobile Messenger, for an undisclosed sum. MM obtains m-Qube’s direct connections to carriers in the US and Canada, and its entire business of delivering commercial messaging and premium mobile content. Verisign acquired mQube for $250 million more than three years ago, though the sale price is likely only a fraction of that. MM was started in Australia, and entered U.S. in 2004; it was m-Qube’s largest client.

Mobile Messenger, which is majority owned by PE firm Silver Lake Sumeru, remains headquartered in Los Angeles. m-Qube’s Boston office has been integrated into MM as a business unit, and will serve as the company’s global tech headquarters. Newly appointed CTO Purandar Das will lead the integration and MM’s technology operations from Boston. More details in release.

Updated: The price was disclosed in an SEC filing by Verisign: $1.78 million cash, and it will also receive an amount equal to m-Qube

By Rafat Ali

You're subscribed! If you like, you can update your settings

Related stories

  1. Whoever purchased the assets also needed to indemnify Verisign from all of the premium content lawsuits against m-qube.

    Share
  2. Verisign is indemnifying MM until the deal closes, and from the sound of it, after too, at least for prior business. From SEC filing: "The Company will indemnify the Purchaser for, among other things, certain liabilities associated with the MDG business that have arisen or may arise from the conduct of the MDG business prior to the closing date. The Company generally will be responsible for existing liabilities associated with the MDG business. "

    Share
  3. "and MM will also receive an amount equal to m-Qube’s working capital as of the closing date"

    do you mean

    "and Verisign will also receive an amount equal to m-Qube’s working capital as of the closing date"

    Share
  4. Hey al
    yes, thanks for pointing that out. corrected.

    Share
  5. Actually, after reading the fine print in the 8-K, it seems to me, that 17.5 million for m-qube's working capital is just paying cash for non-liquid current assets (such as accounts receivables that have not yet been settled). 786K was paid to VRSN to cover severance packages paid to former employees. So in the end, MM is paying a 1 million dollar premium for the business.

    Share
  6. Rafat, It seems like you love to editorialize in your headlines. Why not simply report the news and/or explain why the company was sold at the low price. The tone of your articles is often one of schadenfreude – are you really so jaded at this point? I would love to see more facts and objective journalistic standards. And no, I do not work for m-Qube.

    Share
  7. Any sense for revenues of the m-cube business at this point? When it was purchased by Verisign it was something on the order of $62.5mm as I recall.

    Share
  8. mcube was house of cards, founders scammed verisign

    Share
  9. As a former VeriSign employee who joined the company by way of another botched acquisition and worked there at the time of the acquisition of m-Qube I can attest to the nearly criminally incompetent leadership in VeriSign’s M&A department at that time.  They wasted hundreds of millions of dollars of shareholder’s money on acquiring numerous ‘houses of cards’ on which they consistently did inadequate due diligence.  Can anyone say ‘Crazy Frog?’  Mahi de Silva and Dan Mosher were the ones responsible for these deals.  As a continued VeriSign shareholder, I am glad to see those boys gone, gone, gone, and the company focussing on real businesses.

    Share

Comments have been disabled for this post