Xero Mobile's reverse merger

MVNO Xero Mobile announced a reverse merger today with publicly traded Desi TV that has the blogosphere holding its nose. Xero went public without having to launch an MVNO, a typical move for a "pump-and-dump style scam," as the guys at Techdirt called it. Not surprisingly, the new company will still be called Xero Mobile. Xero's MVNO pitch is handsets for college kids at "notably competitive prices" with no contracts; in return, students agree to accept "a small number of relevant video ads on their handset each day." Each ad provides the user with an undisclosed amount of free mobile air time. Xero says it will launch in the fall of this year.

Former executives of the much ballyhooed gaming company Gizmondo run Xero Mobile, while ex-Gizmondo head Carl Freer supposedly helped the company raise $300 million in venture capital. Gizmondo went bust after trying to take on Nintendo and Sony in the handheld gaming market. Many of the Xero executives quit Gizmondo after past allegations of fraud against other executives there came to light.

For more on Xero Mobile:
- see this press release