Motricity Smartphone and Direct2Consumer Biz Sold to PocketGear

By Editor Wireless and Mobile News on June 4, 2008 12:31 PM

Mobile content provider of infrastructure and services, Motricity, announced that it has sold its smartphone and direct-to-consumer businesses to an entity owned by Motricity co-founder, former board member and executive 27 year-old Jud Bowman. The new company will operate going forward as PocketGear, Inc.

The sale includes Motricity's direct-to-consumer businesses PocketGear.com, SymbianGear.com, PalmGear.com, Smartphone.net, Mobile2Day.de, and smartphone application storefronts powered for partners including Palm, Sony Ericsson and AOL.

Financial terms of the transaction were not disclosed.

In conjunction with the closing of the transaction, Bowman has resigned his position on the Motricity board of directors. The company announced layoffs earlier this year.

"The divestiture of our smartphone and direct-to-consumer businesses supports Motricity's commitment to continue to strengthen our focus on our core business of providing mobile content infrastructure and services for the leading global mobile operators," said Ryan Wuerch, chairman and chief executive officer of Motricity. "The direct-to-consumer business was part of the foundation of Motricity and has strong potential for continued growth. However, it is no longer aligned with the strategic focus of the company.

"This transaction will enable many of the same employees that have worked with this part of Motricity for years to continue to operate the business. Jud played such an integral role in Motricity's success and I'm confident he'll have the same success with PocketGear," Wuerch added.

PocketGear will assume responsibility for Motricity's smartphone and direct-to-consumer businesses immediately. Customers and partners of the affected businesses can expect business as usual with a seamless transition and no interruption to service.

"I am very proud of what we built at Motricity over the last eight years," said Jud Bowman, president and chief executive officer of PocketGear. "Today the company is the leading provider of mobile content infrastructure and services, powering some of the largest operators in the world. I look forward to Motricity's continued growth and success.

"While it's difficult to leave Motricity, I'm incredibly excited about the opportunity to lead PocketGear and believe the smartphone application market is poised for significant growth," Bowman added.