Atrinsic, the mobile and online applications and content company known as New Motion (OTCBB: NWMO), has bought out the assets of Ringtone.com, a mobile content download site…more importantly, the company bought an attractive domain name. Ringtone.com was a wholly-owned subsidiary of W3i Holdings, a provider of desktop marketing and mobile marketing solutions, based in St. Cloud, Minnesota…Atrinsic will pay W3i $6.25 million in cash, offset by $1.5 million in working capital for a net cash outlay of $4.75 million. In addition, W3i will receive a $1.75 million convertible note, with a 10 percent coupon and a term of one year.
The company expects to materially reduce its annual customer acquisition budget as a result of this acquisition, and reconfirms its 2008 pro forma guidance of $145 million to $160 million in revenue with adjusted EBITDA of $15 million to $20 million. Ringtone.com will move from solely a subscription based model into a “more flexible and robust business model with multiple revenue streams, including an ad-supported model,” it said. More details here.