Motricity, a heavily funded mobile content infrastructure company announced today that they are restructuring its business, laying off 250 people and moving its headquarters from Durham, N.C. to Seattle.
There have been lots of
rumors about this news and the company made it official today.
The elimination of nearly half of its workforce will occur over the next nine months, with all affected workers getting an unspecified severance.
For those of you not familiar with Motricity, they provide the core technology platform that enables wireless carriers (AT&T, T-Mobile) to sell and distribute content from the device. If you've ever downloaded a ringtone or game from your phones store, it's likely that Motricity (or one of their few competitors) powered some or all of that transaction.
The
Movaya team pays close attention to what Motricity does because we provide a similar set of technology to our customers who want to sell and distribute digital content for mobile devices. The difference is that Motricity's customers are wireless carriers and Movaya's customers are anyone with a website.
One of the announcements in the release that caught our eye, was that Motricity plans to retract from their non-carrier (or direct-to-consumer) business to focus on their carrier customers.
Now, one might hear that news and assume that if Motricity is getting out of the direct-to-consumer business that it must be a bad business to be in. Certainly the off-deck business is not growing as fast as some in the market had anticipated, but I think the real issue here is that Motricity needs to FOCUS on what they do well and what is paying the bills for them.
Talk to anyone in the mobile content space and you will quickly learn that the Motricity platform is far from perfect and they need to get their current house in order before they can extend their reach to new markets. Just as Movaya has chosen to focus on providing best of breed technology for off-deck mobile content sales, Motricity is best served focusing on their core business, which is providing best of breed services to wireless operators. You simply cannot be all things to all people.
But, if you are a portal or content provider that used to work with Motricity for off-deck purposes, the Movaya team would love to talk to you about how we can help.
Give us a call, or
drop us a line.

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