Mojungle, the mobile media sharing site that put itself up for sale on eBay last week, says it has taken the listing down this week and now plans to sell off five versions of its service to interested buyers. The company received zero bids during the eBay auction in which they expected to get at least $250,000.
The CEO Ophir Tanz says that the company made the decision to take down the listing because they received interest from a diverse group of buyers that were interested in the technology for different purposes. Tanz says those parties weren’t willing to use eBay to purchase the company for various reasons:
We have taken the listing down and will now be selling 5 copies of the platform/site/brand (or some combination thereof). It turns out that essentially all interested buyers are looking to use the platform in different ways and are interested in capitalizing on different assets (ie: the core parsing technology vs. the site vs. the brand vs. the user base/traffic) and this approach gives Mojungle an opportunity to provide a more customized solution to various players at a price-point that will ultimately [be] lower than purchasing the package in a competitive auction.
It could be that no one wanted to buy the company outright for even $60,000 or that eBay is just a poor choice for selling a startup. Tanz says even though no one bid on the site on eBay, his phone has been ringing off the hook, and that the company will likely earn slightly upwards of the $250,000 for selling the company in five parts. Wishful thinking again? He says around 30 people showed interest and that around 10 will likely try to buy.
We’ll have to take his word for it, though it still doesn’t seem like a good sign for other mobile media sharing startups. Now there will be another five more companies that will be adding mobile media sharing Mojungle-style, which have spent only some tens of thousands of dollars adding that feature. VCs that have been investing in these sites for months, watch out! You may find that valuable MySpace of mobile, but then again your startup could spend a week in an eBay auction and end up with no bids.