Mobestar Rises From The Ashes

OPW -- Mar 30 -- Mobestar, a UK company that launched in 2004, was known for developing white label technology and content for the mobile entertainment market, including social networking and online dating. What sounded like a great way to hit a fast growing market may have actually been marketed too soon with technology that was not quite ready. From the beginning, the company was allegedly losing money and reported a loss of nearly £2 million for 2006 and then again in 2007. By June 2008, speculation about the company’s imminent demise began creeping across the internet. While they were reportedly continuing to sign contracts throughout 2008, the money was coming in much more slowly than expected. In October they were suspended from trading on the AIM market, and in December a proposal was issued by their newly appointed Joint Administrators to sell the business and satisfy their considerable list of creditors, if possible.

In what appears to have been a victorious sale, Mobestar is now back on the market following what they are billing as a “successful” relaunch of the company on February 1. Touting a new location in Central London, because of unpaid rent at the previous location, Managing Director Marcus Bennett said they have achieved their first quarter goals to “relaunch, reposition and relocate.” Mobestar is also promising the “unveiling [of] a diversified portfolio of new products and customers in exciting new high growth markets”. According to their website, the only customer they retained from their previous incarnation, and their only current customer, is QSoft Consulting’s Gaydar. The only two products being offered at the moment are mDate and mSpace, neither of which is new or exciting. It will be interesting to see what new customers and products are announced in the coming months as it is difficult to place a lot of faith in Mobestar’s future when their “relaunch” looks strangely similar to the company that folded only three months ago. - by the Courtland Brooks Team

This post also appears on SocialNetworkingWatch.