Menu abandons US acquisition abandons US acquisition

Mobile social networking platform developer (ASX:MKB) has abandoned its planned $5.5 million purchase of a US mobile community business, after it was unable to come to terms with the buyer.

The company in March revealed plans to buy the mobile social business developed by Cellfish Media in an all-stock transaction for 27.5 million MKB shares.

But on Tuesday, said that it had pulled its offer after it became clear that the negotiations would not result in an agreement on purchase contract terms.

The decision to terminate negotiations was made in order to “preserve [our] working relationship and mutual desire to explore new marketing initiatives,” the company said in a statement.

A planned $5 million capital raising planned to support the acquisition will also be cancelled, said.

The company added that it is currently evaluating some other potential acquisitions, and is being advised by Merriman Capital on capital markets activities.

The company's purchase of UK-based mobile video community site EyeVibe closed in March.

MKB shares stayed flat on Tuesday at $0.085.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionssocial networkingMOKO.mobiASX:MKBCellfish Media

Show Comments