Helio

Virgin Mobile USA completes Helio acquisition

Jason Ankeny — Mon, 25 Aug 2008 09:46:56 -0400

Virgin Mobile USA said its acquisition of rival MVNO Helio is now complete, with Helio shareholders SK Telecom and EarthLink receiving limited partnership units and shares equivalent to 13 million shares of Virgin Mobile USA common stock valued at $38 million based on the average closing price as of two trading days before and two trading days after the deal's June 27 announcement. In addition, SK Telecom and Virgin Group will each invest $25 million in Virgin Mobile USA for preferred shares. Beyond adding Helio's differentiated postpaid offer to the Virgin Mobile USA portfolio, the deal also heralds revised rates from network operator partner Sprint resulting in an 8 percent cost-per-minute reduction, roughly 17,000 Helio subscribers and a reduction in net debt totaling between $35 million and $40 million.

For more on the Virgin Mobile USA/Helio agreement:
- read this release

Related articles:
Virgin Mobile extends Sugar Mama to Facebook
Virgin Mobile USA teams with Limbo

Virgin Mobile USA confirms Helio acquisition

Jason Ankeny — Fri, 27 Jun 2008 10:05:52 -0400

Virgin Mobile USA officially confirmed it will acquire rival MVNO Helio from SK Telecom and EarthLink. Per terms of the deal, SK and EarthLink will receive limited partnership units equivalent to 13 million shares of Virgin Mobile USA class A common stock, valued at $39 million based on June 26 closing prices. The transaction is expected to close in the third quarter. Parent firm Virgin Group and SK Telecom will also invest $25 million each of equity capital in the post-merger Virgin Mobile USA--through its holding of limited partnership units and preferred stock, SK Telecom will own approximately 17 percent of Virgin Mobile USA, and will take two seats on the company's board of directors.

The deal enables Virgin Mobile USA to transition into the postpaid subscriber market-- last month, the MVNO reported first quarter net income of $4.8 million, down 75 percent year-over-year, and announced anticipated Q2 subscriber losses between 130,000 and 160,000. According to Virgin, roughly 20 percent of those lost subscribers move on to postpaid operators. Helio reported in January subscriber totals approaching the 200,000 mark, with ARPU of roughly $80. The acquisition also allows Virgin to add a suite of new data applications and services, including partnerships with YouTube, Google and MySpace.

Virgin Mobile USA will also revise its network capacity agreement with Sprint Nextel, and said it expects to achieve a minimum of an 8 percent reduction in its effective cost per minute in 2009, with further reductions over the next three years. The new deal means Virgin Mobile USA's cost per minute is now tied directly to the volume of network traffic it generates, and will no longer be dependent on Sprint's network costs. According to Virgin, the new volume discount structure allows additional flexibility in pricing--moreover, effective July 1, Sprint will provide a $2.50 network usage credit to Virgin for each gross customer addition, with a cap at $10 million.

Some may suggest Helio's demise heralds the official end of the MVNO era. But as long as P Diddy lives, MVNOs will never die.

For more on the Virgin/Helio deal:
- read this release

Related articles:
EarthLink loses $111.3M on Helio in 2007
Sky Dayton resigns as Helio CEO

Virgin Mobile USA poised to acquire Helio

Jason Ankeny — Wed, 25 Jun 2008 07:52:27 -0400

Virgin Mobile USA will acquire embattled MVNO Helio, according to a report in The Financial Times. Citing sources with inside knowledge of the negotiations, The FT says Virgin Mobile and Helio majority owner SK Telecom have agreed in principle to a deal that will see Helio's operations and subscribers absorbed into the Virgin Mobile USA brand--in exchange, Virgin will issue new shares giving SK Telecom roughly 20 percent equity in the combined business. SK will also invest a nominal sum in Virgin Mobile USA.

The Financial Times notes that the post-merger Virgin Mobile USA will now be able to expand into the monthly contracts markets and renegotiate its network capacity agreement with Sprint Nextel. Last month, the MVNO reported first quarter net income of $4.8 million, down 75 percent year-over-year--in addition, the company announced anticipated Q2 subscriber losses between 130,000 and 160,000. Helio reported in January subscriber totals approaching the 200,000 mark.

Earlier this week, Gizmodo reported that SK Telecom and Virgin Mobile USA's merger negotiations were stalled, with Virgin's continued interest in Helio hinging on either a bankruptcy declaration or massive liquidation. The article also said Helio was poised to begin closing its retail locations and kiosks.

For more on the Virgin Mobile USA/Helio deal:
- read this Financial Times article

Related articles:
EarthLink loses $111.3 million on Helio in 2007
Sky Dayton resigns as Helio CEO

Helio planning to close stores, kiosks

Jason Ankeny — Mon, 23 Jun 2008 10:58:40 -0400

Goodbye, Helio: Gizmodo is reporting the embattled MVNO is on life support after merger negotiations between parent firm SK Telecom and Virgin Mobile USA stalled. According to reports, Virgin's continued interest hinges on either a bankruptcy declaration or massive liquidation--in the meantime, Helio is planning to begin closing its retail locations and kiosks. Even if an official merger fails, reports suggest that remaining Helio subscribers will be migrated to the Virgin Mobile network.

For more on the Helio rumors:
- read this Gizmodo article

Related articles:
EarthLink loses $111.3M on Helio in 2007
Sky Dayton resigns as Helio CEO

Helio adds GoTV mobile music channels

Thu, 27 Mar 2008 07:59:56 -0400

Mobile media network GoTV announced an agreement with Helio to deliver an integrated music service to the MVNO's subscribers. GoTV will provide Helio with on-demand, made-for-mobile music magazines including Rock: On Altitude and Hip Hop Official, promising access to music news, charts and tours as well as clothing and lifestyle updates. The deal also includes GoTV's fledgling ES Musica mobile channel, which features daily news, music videos, interviews and live performances spotlighting Latin pop, rock, hip-hop and reggaeton. GoTV will produce daily segments from its mobile media network studios in Sherman Oaks, California.

For more on the GoTV/Helio deal:
- read this release

Related articles:
Opera Mini goes surfing on Helio's Ocean
Helio gets Buzzd
Helio adds online content, feels the Heat

Opera Mini goes surfing on Helio's Ocean

Wed, 19 Mar 2008 07:59:56 -0400

Web browser development firm Opera Software announced its first U.S. mobile service provider deal with MVNO Helio, which will launch a specially-tailored version of the Opera Mini mobile web browser exclusive to its Ocean dual-slide smartphone. Opera Mini is available now as a downloadable application via Helio's web portal. "We're always looking to give our members their choice of great applications so we're excited to be the first service provider in the U.S. to make Opera Mini an on-deck option," said Helio vice president of service management Doug Britt in a prepared statement.

For more on the Helio/Opera deal:
- read this release

Related articles:
Google again Opera's mobile search du jour
Opera 9.5 SDK for Devices released
Opera debuts Mini 4 mobile web browser

Helio losses grow, but so do revenues

Fri, 29 Feb 2008 06:59:59 -0500

Mobile virtual network operator Helio continues to hemorrhage cash … but on the bright side, its 2007 revenues increased 264 percent over the previous year. In its annual report to the SEC, Internet service provider EarthLink, which launched Helio in conjunction with Korean mobile operator SK Telecom, notes Helio lost $327 million in 2007 against $171 million in revenue; a year ago, the MVNO posted losses of $192 million on $47 million of revenue, which combined with 2005 losses of $42 million means Helio has now posted total losses of $560 million in three years. Helio ended the fourth quarter with slightly more than 180,000 subscribers, a 28 percent increase over Q3 totals. But while revenue still exceeded Helio's $140-$170 million guidance, and losses fell shy of its $340 million to $360 million guidance, EarthLink admits in the SEC filing it "may not realize the benefits we sought from our investment in the Helio joint venture."

The EarthLink filing goes on to note "We have made $210 million of cash investments in Helio. The financing of Helio's operations has adversely affected our cash position. In addition, Helio will require additional funding in the future and Helio has incurred losses and we expect Helio to continue to incur losses. In addition, Helio may not be successful in implementing and marketing its wireless voice and data initiatives, and there can be no assurance that these initiatives will be commercially successful. We cannot assure you Helio will be able to achieve or maintain adequate market share or revenue or compete effectively."

For more on Helio's 2007 results:
- read this Silicon Alley Insider article

Related articles:
Helio gets Buzzd
Sky Dayton resigns as Helio CEO
SK Telecom pumps another $270M into Helio

Helio gets Buzzd

Wed, 06 Feb 2008 06:59:58 -0500

Mobile virtual network operator Helio announced an agreement which local entertainment service provider Buzzd, which provides real-time, location-based information for area bars, clubs and restaurants. Spanning events and venue in all major U.S. cities, Buzzd features editorially-driven information aggregated via partnerships with Flavorpill, TimeOut New York and CitySearch as well as user-generated reviews and ratings from friends and other Buzzd community members--the service also enables subscribers to find and message friends. "The partnership is exciting as both Helio and Buzzd are using mobile technology to connect people with local entertainment around them," said Buzzd co-founder and CTO Deepen Shah in a prepared statement.

For more on the Helio/Buzzd deal:
- read this release

Related articles:
Sky Dayton resigns as Helio CEO
SK Telecom pumps another $270M into Helio
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

Sky Dayton resigns as Helio CEO

Tue, 29 Jan 2008 06:59:58 -0500

Mobile virtual network operator Helio announced that founding CEO Sky Dayton has resigned his post, with president and COO Wonhee Sull named as his replacement. Dayton was appointed non-executive Chairman of Helio's Board of Directors. The company said he will remain actively involved in shaping its strategy and initiatives. "Helio has reached a point in its development where I feel the timing is right for this change," Dayton said in a statement.

Dayton's move will no doubt further speculation that EarthLink (the ISP he founded in 1994) is planning to sell its stake in Helio, which it launched in association with Korean operator SK Telecom. Last fall EarthLink president and CEO Rolla Huff reiterated the company's commitment to Helio: "I think that the investment that we've made there absolutely has value," Huff insisted at the time. "We have no plans to go out and sell it. It's a growing business. It's a business that we support."

In announcing Dayton's resignation, Helio also reported usage statistics for its nearly 200,000 subscribers, claiming an ARPU of $85 and a 2007 revenue run rate of over $240 million based on December actuals. Helio also reported:

An average of over 550 text messages per member per month
95 percent of subscribers access the web via mobile device
Each month, 60 percent of subscribers access MySpace via Helio and average nearly 500 page views
In December, subscribers uploaded photos from their device to the web at a rate of five times the industry average
57 percent of Ocean users downloaded Helio's exclusive YouTube application within two weeks of its launch

For more on Dayton's resignation:
- read this release

Related articles:
SK Telecom pumps another $270M into Helio
Helio squashes rumors of massive layoffs
Helio to succeed where Mobile ESPN failed?
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

uLocate acquires Buddy Beacon brand from Helio

Fri, 11 Jan 2008 06:59:56 -0500

Location-based services developer uLocate Communications announced its acquisition of the Buddy Beacon friend-finder brand from struggling MVNO Helio. Financial terms were not disclosed. Introduced by Helio in partnership with uLocate in 2006, Buddy Beacon leverages location-based technology to enable users to share their location with personal contacts via mobile device--per terms of the deal, uLocate and Helio will continue to collaborate on improving and expanding the service.

For more on the uLocate/Helio deal:
- read this release

Related articles:
Alltel, uLocate team for WHERE
SK Telecom gains control of Helio
SK Telecom pumps another $270 million into Helio

ALSO NOTED: Helio introduces multimedia management software; Turner Broadcasting extends mobile gaming deal with Player X; and

Wed, 19 Dec 2007 06:59:53 -0500

> Helio introduces multimedia management software Release

> Turner Broadcasting extends mobile gaming deal with Player X Release

> Viigo scores $6.4 million in Series A Release

And finally… Britney Spears' 16-year-old sister is pregnant. In related news, mom Lynne's book on parenting is "delayed indefinitely" Article

MySpace introduces ad-funded mobile service

Wed, 12 Dec 2007 06:59:59 -0500

Social networking website MySpace introduced a free, ad-funded mobile version optimized for all U.S. carriers, calling into question the future of premium MySpace services available via AT&T, T-Mobile and Helio. According to MobiAD Network, the new service enables users to send and receive messages and friend requests, comment on photos, post bulletins, update blogs and search for friends--while advertising will at first remain limited to sponsorships and banner ads, parent Fox Interactive Media said it will eventually introduce more targeted campaigns based on user registration data as well as local ads based on GPS data. "Accessing the Internet from your mobile phone will soon be as common as text messaging and voice calling," said Fox Interactive's senior vice president of mobile John Smelzer.

For more on the new MySpace Mobile:
- read this MobiAD Network article

Related articles:
T-Mobile USA befriends MySpace
Vodafone, MySpace more than just friends
Report: MySpace Mobile leads social networking pack

Helio debuts feature-rich YouTube service

Wed, 12 Dec 2007 06:59:58 -0500

Mobile virtual network operator Helio announced a new YouTube application it is calling "the most comprehensive YouTube experience currently offered on mobile," promising integrated video capture and upload for near real-time sharing, GPS tagging, personalization and community features like rating and commenting. Available free for Helio Ocean users, the custom YouTube app also enables subscribers to view tens of millions of videos, save and share favorite clips, and access their own video feeds. "This is the closest thing to the YouTube web experience available on mobile today," said Helio VP of media and community services Rob Gelick in a prepared statement. "With the ability to do things like GPS tagging and posting video responses right from a device wherever you happen to be, it brings new possibilities to the YouTube world."

For more on the Helio/YouTube partnership:
- read this release

Related articles:
YouTube on Helio: Two clicks, no fees
YouTube generates iPhone content
LG, YouTube partner for video handsets
Verizon Wireless, YouTube make it official

ALSO NOTED: Apple, China Mobile end iPhone talks; kajeet adds EA Mobile games; and much more...

Mon, 03 Dec 2007 06:59:53 -0500

> Apple, China Mobile end iPhone talks. Article

> kajeet adds EA Mobile games. Release

> QD3 Entertainment launches branded mobile channel via Helio. Release

And finally… Art critics acclaim two-year-old's ketchup smears. Article

EarthLink not selling off Helio stake

Fri, 26 Oct 2007 06:59:59 -0400

In a conference call Thursday, EarthLink president and CEO Rolla Huff reiterated the Internet service provider's commitment to Helio, its struggling joint venture with Korean operator SK Telecom, insisting there are no plans to liquidate its stake in the MVNO. Despite third-quarter net losses of $92.3 million, Huff said he believes Helio will succeed: "Virgin Mobile hopefully has proven that value can be created with the right business model," he said. "While we'll have the option to participate in future funding rounds that might be required, we have stopped our participation in the current funding rounds. We believe our preliminary agreement with SKT will put value in the $210 million that had previously been invested by EarthLink."

Later in the call, Huff denied rumors EarthLink will cut its losses and sell off its Helio stake. "I think that the investment that we've made there absolutely has value," Huff insisted. "We have no plans to go out and sell it. It's a growing business. It's a business that we support. We clearly understood that putting needed cash into that business was not in the best interest of our shareholders from here on out. We're going to continue to be part of the governance structure and I think I've been saying all along, we believe there's value in this business. I would just point out that there were folks from time to time that were suggesting that what we should have done is just let it hit the wall and I hope that what has happened over the last few weeks and during the third quarter would suggest that we took a more thoughtful approach and that we are trying to create shareholder value."

For more on Helio's future:
- read the conference call transcript

Helio suffers Q3 losses of $92.3 million

Thu, 25 Oct 2007 06:59:56 -0400

Embattled MVNO Helio posted third quarter revenues of $51.7 million and net losses of $92.3 million according to Internet service provider EarthLink, which launched the joint venture in tandem with Korean operator SK Telecom. EarthLink reported a net loss of $79.4 million on $298.8 million in revenue, compared with a net loss of $3.2 million on $331.3 million in revenue in Q3 2006. During the quarter, EarthLink handed over a $30 million loan to cover Helio's day-to-day operations, but said that while it will not participate in future funding rounds, it will retain "a meaningful ownership interest."

For more on the Helio losses:
- read this release

Helio inks HD content deal with KushTV

Mon, 08 Oct 2007 06:59:57 -0400

Mobile virtual network operator Helio announced a partnership with multi-platform, high-definition content network KushTV to distribute original made-for-mobile series including The Loc Dog Show, Perfect Picks, Beverly Hills Confidential and Ya Boy--Road to Riches. The KushTV short-form, reality-based programming lineup debuted the summer, quickly earning a fan following via MySpace--in addition to Helio, the network presently boasts branded channel partnerships with Joost, YouTube, and Akimbo. Additional high-def programming is scheduled to debut in the upcoming months. "Helio's audience is indicative of where mobile content is heading and we believe that our relationship with Helio will help redefine the experience for mobile content in a growing market," said KushTV co-founder Aaron Justin.

For more on the Helio/Kush TV deal:
- read this release

Related articles:
Read about SK Telecom's $270M cash dump on Helio
Helio squashes rumors of massive layoffs
Helio to succeed where Mobile ESPN failed? Read why here
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

No fairytale ending for Disney Mobile

Fri, 28 Sep 2007 06:59:59 -0400

The Walt Disney Internet Group on Thursday pulled the plug on its Disney Mobile venture, two weeks after broadly hinting at the MVNO's imminent demise and almost a year to the day after shutting down its Mobile ESPN initiative. WDIG said it will shutter Disney Mobile later this year to explore a new business model for its content and services, presumably reinventing its Family Center service suite as a wireless carrier application (similar to its resurrection of Mobile ESPN services as ESPN MVP, the application now available via Verizon Wireless).

Disney Mobile's demise follows two months after MVNO Amp'd Mobile announced its suspension of operations. Earlier this week, Korean operator SK Telecom said it would invest another $270 million in Helio, the struggling U.S. MVNO it launched in conjunction with Internet service provider EarthLink.

"Our feedback from customers and critics from the beginning has been that we exceeded the mark in that respect," said Steve Wadsworth, Walt Disney Internet Group president. "However, the MVNO model has proven, as we've seen with other companies this past year, to be a difficult proposition in the hyper-competitive U.S. mobile phone market. In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."

Disney Mobile launched in June 2006 over the Sprint network. The service will remain live through Dec. 31--Disney has offered to reimburse subscribers who purchased handsets, accessories and content through the company. The fate of Disney Mobile's 120 employees is presently under discussion.

For more on the Disney Mobile shutdown:
- read this release

Related article:
SPOTLIGHT: On the Hot Seat with Disney's Larry Shapiro

News Corp. debuts ad-funded MySpace Mobile Web

Mon, 24 Sep 2007 06:59:59 -0400

Fox Interactive Media announced an advertising-funded mobile incarnation of its social networking service MySpace, part of parent company News Corp.'s wider bid to generate ad revenues via the mobile web. Fox Interactive Media already offers a premium MySpace Mobile service via operators including AT&T, Helio and Vodafone--the new ad-supported service set to launch Monday will operate across all U.S. carriers and will enable subscribers to send and receive messages and friend requests, comment on photos, post alerts, update blogs, and find and search for friends. At launch Fox Interactive Media will focus on sponsorships and banner ads, but eventually will move to more targeted advertising based on user registration data--local ads based on GPS data are also scheduled to follow.

"The MySpace Mobile Web significantly lowers the barrier of entry for all MySpace users to access their profiles on-the-go," said Amit Kapurfor, MySpace VP of business development. "An ad-supported MySpace offering is a major component of our mobile monetization strategy and we look forward to broadly offering this industry leading roll-out to advertisers."

In addition to the free MySpace service, Fox Interactive Media will introduce ad-funded mobile versions of FoxSports.com, gaming site IGN, movie site RottenTomatoes.com and AskMen.com--several local TV affiliates will also launch free sites, and in the weeks ahead, image-sharing site Photobucket will make its mobile debut as well. FIM will partner with mobile advertising network Millennial Media to both sell and serve mobile-based ads, with a limited number of MySpace charter sponsorships available during the next few months.

For more on the ad-funded MySpace service:
- read this release
- and this Baltimore Sun article

Related articles:
T-Mobile befriends MySpace Mobile
Cingular launches MySpace Mobile
Vodafone, MySpace more than just friends
Report: MySpace Mobile leads social networking pack
Release: Nine NBC Universal Channels Coming to Verizon Wireless V Cast Phones
CBS eyes new mobile division

SK Telecom pumps another $270 million into Helio

Mon, 24 Sep 2007 06:59:56 -0400

Internet service provider EarthLink confirmed an announcement that Korean operator SK Telecom will invest an additional $270 million in Helio, the struggling MVNO the two firms jointly launched in mid-2006. In addition, EarthLink and SK Telecom are currently in negotiations to amend their existing agreements to reflect the new investment and how it impacts Helio's future governance--the amendments are not yet completed, and the firms said additional further details will not be released until the terms are finalized. Helio ended August with 130,000 subscribers, with a subscriber base of 200,000 to 250,000 expected by year end--despite revenue forecasts of $140 million to $170 million, the venture anticipates full-year net losses of $340 million to $360 million.

For more on the Helio funding:
- read this release

Related articles:
Helio's struggles show risks of serving niche markets
Helio squashes rumors of massive layoffs
Helio to succeed where Mobile ESPN failed?
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming