Motricity InfoSpace Transaction Frequently Asked Questions (FAQs)

Why did Motricity acquire InfoSpace's mobile unit?

Adding InfoSpace to Motricity provides great benefit to us on many levels.

First, it improves our market share considerably. We now power 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. We power the mobile portal or "start screen" for 5 of the top 6 carriers in North America and content storefronts and communities for 9 of the top 13 carriers in North America.
It enhances our technology - InfoSpace has a strong tradition of delivering innovative, high quality products and services. It also enhances our account management capabilities, particularly at AT&T given their close physical proximity to them and on-site teams.
It gives us an international customer footprint given their presence in Europe.
And finally, it positions us very well to grow with our customers. We are now a single source solution for mobile operators and media companies alike - offering them the full range of services with our integrated, scaleable FuelTM platform. An end-to-end platform is particularly valuable in a market where technology is converging and operators are seeking support across multiple media types.

What are the financial terms of the deal?

We purchased InfoSpace's mobile division for $135 million in an all cash transaction.

Who were the investors in the latest round of funding?

Carl Icahn and Advanced Equities, Inc. provided significant investments to lead the funding of the transaction.

When will the transaction close?

The transaction is subject the regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 as well as certain customary closing conditions. We expect that it will close in the next 90 days.

Is there any chance the transaction will not close?

As with any transaction of this size and scale, there's always a chance that something could come up to impact the closing, but we do not expect that to happen.

Does Motricity add new customers or markets with this transaction?

We add several new customers, including North American leaders like Verizon Wireless, TMobile and Rogers along with customers throughout Europe including Virgin UK, KPN and Vodafone. We add offices in Seattle, U.K., Paris, and the Netherlands we'll be powering customers throughout Europe.

What does this mean to the industry?

The merger signals a continued maturation of the mobile content industry. We've seen several acquisitions in the past two years however most have been mobile as an add-on for larger corporations. We are the leading pure-play company that provides a unified, interoperable, scalable carrier-grade, end-to-end solution in the marketplace.

How does this impact Motricity's position for the future?

This transaction improves our strategic and financial position, providing the scale to grow with our partners.

InfoSpace is a public company. Does Motricity become public as a result of this transaction?

Motricity is acquiring a division of InfoSpace, not the entire company, which is the public entity, so no we are not going public as a result of this transaction.

What does Motricity's acquisition mean for a possible IPO?

We continue to evaluate our options however we are more concerned with "execution to market" with this acquisition further demonstrating that commitment.

How and when will we integrate the two companies?

The formal integration will not begin until the closing of the transaction, which we expect will happen in the next 90 days.

To prepare for the formal integration, we will name an integration team immediately. The integration team will include members of both organizations.

Will we keep the Seattle office open?

Yes, we will maintain a significant presence in the Seattle area. We've arranged to lease three floors of office space at the InfoSpace headquarters building in Bellevue, WA. Some of the leadership team will be based in Seattle and as well as many of the employees. It's not clear yet which groups will be based there (we'll determine that after going through the integration process), but we know that there will be significant presence in both Durham and Seattle.

What will the leadership team look like?

Upon closing, Ryan Wuerch will remain as Chairman and CEO. Steve Elfman will become President and Chief Operating Officer. The balance of the team will be named as we move through the integration process. There will be leaders based in both locations.

What can customers expect until closing?

Customers of Motricity and InfoSpace can expect "business as usual" with no interruption to operations or customer service, with the benefits of the acquisition being realized by customers over the following months.

We will work closely and communicate often with you so that the transition process is smooth and the end result is an even stronger unified platform with the highest quality managed services solutions available.