Mobile Games Co. Twistbox Merges With Shell Co.
Press Release, January 03, 2008
Mobile games publisher Twistbox Entertainment Inc. has agreed to merge with publicly traded shell company Mandalay Media Inc.
In a statement, Mandalay said venture-funded Twistbox will become a wholly owned subsidiary of the company, with its chief executive, Ian Aaron, joining Mandalay’s board and continuing to run Twistbox.
Sherman Oaks, Calif.-based Twistbox, formerly known as Waat Media, started out as a distributor of adult movies and games to mobile devices. The company has since changed its focus to mainstream games, WAP sites and mobile TV channels.
According to VentureWire records, Twistbox raised a $12.75 million first round from Spark Capital in 2006, and a subsequent $19.5 million round from ValueAct Capital Partners announced in September 2007.
Dennis Miller, a general partner at Spark Capital who serves on the board at Twistbox, could not immediately be reached Wednesday. Ian Aaron, Twistbox chief executive, and Mandalay’s president, Jim Lefkowitz, also could not be reached for comment.
The deal is expected to close in the first quarter of this year. The value of the deal couldn’t be learned as of press time.
Los Angeles-based Mandalay has a market capitalization of $101 million, based on 21.7 million shares valued at $4.65 a share as of Wednesday’s close.
The company has been inactive since 2005, a filing with the Securities and Exchange Commission said.
Originally incorporated in Delaware in 1998 under the name of eB2B Commerce Inc., it later merged with New Jersey-based DynamicWeb Enterprises Inc. The merged company, which was called eB2B Commerce, provided business-to-business transaction management services. It changed its name in 2005 to MediaVest. In 2007, it changed its name to Mandalay Media.
Twistbox has distribution agreements with more than 100 mobile operators in 40 countries, the news release said.
According to VentureWire records, Twistbox last January acquired a mobile games studio from InfoSpace Inc. in another deal with undisclosed terms.
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