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Motricity IPO Price Sinks to $64 Million

Posted In: Economy | FirstNews


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Motriciy cut the price of its initial public offering for the second time in June, lowering its financial expectations to just a quarter its first IPO attempt in January.

According to documents filed with the FCC, Motricity now expects to make just $61.6 million on the deal after it cut the price of its shares to between $10 and $11. Including fees, the mobile content company could net $49.4 million from the offering.

Earlier this month, Motricity said it expected to make $101.3 million on the deal, which then priced its shares between $14 and $16. That price was less than half the $250 million Motricity expected to rake in when it first made a bid to go public in January.

Filings with the SEC show that Motricity has struggled to achieve profitability. Although the company narrowed its losses in the first quarter, it still lost $7.9 million on sales of $29 million. Last year the company lost $12.9 million on sales of $23.2 million.

Motricity's expertise lies in managed service technology that allows subscribers to access third-party content and applications. The company provides mobile data services to about 35 million mobile subscribers every month and has access to 200 million people through its carrier customers.


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