Saturday, November 18, 2006

Sponge 1 Neomedia 0

Some of you may be aware by now that Neomedia has sold Sponge back to its founders for US$250k (official press release). The official line is that Neomedia wants to focus on its qode product (which is a QR code technology recently used in the One Water campaign). However, reading between the lines, it seems that Neomedia's share price has plunged leaving them unable to fulfil their contractual (and financial) obligations to complete the Sponge acquisition deal. Neomedia retains a 7.5% stake and Sponge's founder shareholders keep just over US$6m of the original purchase price. Seems to me that they've played a blinder and that the picture of a champagne bottle on their official news page is very telling ;)

Alex Meisl, founder and CEO of Sponge says, "Sponge is going from strength to strength - business has doubled since the beginning of the year in both the media and agency space." He continues, "We have also grown the team whilst remaining wedded to our belief of great products and great service." (That's good advice to *any* business IMHO)

The company will continue to be run by the existing management team.