UpSNAP to merge with Mobile Greetings

Mobile search and live mobile audio entertainment provider UpSNAP announced an agreement to merge with mobile media services platform developer Mobile Greetings. Per terms of the agreement, which has been approved by both boards of directors, Mobile Greetings shareholders will receive shares equal to 50 percent of the common stock of the combined company on a fully diluted basis including shares underlying a $2.2 million convertible note being issued as part of the merger consideration. UpSNAP has retained a placement agent to conduct a private placement of $3 million of UpSNAP securities, with the placement proceeds earmarked for working capital of the combined company, certain Mobile Greetings obligations and transaction expenses.

According to UpSNAP and Mobile Greetings, the merger--expected to close in late September--will enable the combined company to deliver services to all mobile subscribers regardless of carrier or handset model as well as pursue the ad-driven D2C services market. "Our media customers are calling for integrated mobile solutions that enable them to offer content and advertising direct to any mobile user," said Tony Philipp, UpSNAP chairman and CEO. "This [merger] will allow us to extend our advertising-supported free offerings and search platform, which may now include music, news, and sports content as well as rich media content."

For more on the UpSNAP/Mobile Greetings merger:
-read this release

Related Articles:
UpSNAP teams with The Sporting News on mobile audio
UpSNAP offers premium urban content package for mobile users