Oasys Mobile primping for possible sale
Premium mobile content provider Oasys Mobile announced it has engaged investment banker RBC Daniels & Associates to explore strategic options including a possible sale of the business. Oasys Mobile is seeking to obtain an equity investment or debt issuance in order to pay or refinance an $8 million senior secured debt due in June 2007, and will look to RBC Daniels to investigate potential mergers, acquisitions or strategic investments. At minimum, Oasys needs the banker's assistance to raise enough money to satisfy its creditors--on Monday, the mobile firm filed notice with the Securities and Exchange Commission it doesn't expect to raise enough revenue to repay its debts by the June 30 deadline.
Oasys Mobile CEO Doug Dyer told the Charlotte News & Observer he has instituted new strategies designed to transform the company's fortunes, abandoning previous D2C efforts to focus on creating mobile content for brands including Mattel, Hooters and National Lampoon. Despite a net loss that more than doubled to $14.6 million in 2006, Oasys is forecasting profitability by the end of 2007. "We are a different Oasys Mobile than what was in the past," Dyer told the newspaper. "We now have a seasoned management team in place and have taken steps to outline a clear strategy for revenue generation, profitability and growth."
For more on Oasys' financial concerns:
- read this Charlotte News & Observer article
Related articles:
- Oasys Mobile slashes workforce
- Oasys CEO quits
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Comments
Posted by Anonymous | April 5, 2007 - 1:05pm
Oasys has been failing miserably for several years. Slow death. Their management knows next to nothing about how to be successful in mobile content. The sell-off comes as no surprise.
Posted by Anonymous | April 11, 2007 - 1:46pm
Lots of problems in the past but the new mgmt team knows the business and is making all the right moves. I say they have a good shot at staying alive.
