Xero Mobile Sold, To Newly Formed Company

I’m not an expert in these matters, but this sounds fishy… much maligned incipient MVNO Xero Mobile has signed a deal to be sold to a newly formed company, Advanced Mobile Communications, for an “an undisclosed amount of newly issued shares of common stock of Advanced Mobile”. Also, “the Xero spokesman declined to say whether Xero’s management was otherwise involved with Advanced Mobile”. Xero’s management has been criticised due to ties to failed game console startup Gizmondo, and Xero has already been investigated by the SEC. To me, it doesn’t sound like anything much has changed (particularly doubts about the business model), and the market seems to agree with shares in the MVNO remaining about the same.
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