NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

Drmyke, yes you have said that for quite a while now ..

... and you're right ... subs' owners owning Neomedia.

And, right again, nothing new here, we all knew dilution was coming due to working out another 'top-off' agreement, and one might think this knowledge is already priced into the stock. But, like I said the other day, in spite of these things being 'known', when they hit ya in the face they usually have an effect on the share price. Or, in Neomedia-talk, buy the good news rumor, sell the good news, sell the bad news rumor, sell the bad news.

We need better good news rumors!

No, as nearly as I can tell the BOD and management have performed no proper fiduciary duties on behalf of Neomedia shareholders, at least not for those who buy shares on the open market.

Why indeed. Why has Neomedia maneuvered the ship so far outside safely navigable shipping lanes in order to ferry containers of Neomedia shares and barrels of cash, cash which was itself generated by the printing of shares, to Venture Capitalists, a Vulture Capitalist and the owners of several other companies?

It would be interesting to know all the details. Stupidity? Hubris? A well-orchestrated plan?

Who are the new owners of Neomedia now?

A partial list:

Cornell
Nokia Ventures, L.P.
Apax Europe IV - A LP
ARGC IV, L.P.
ARGO II, L.P.
ARGO II The Wireless Internet Fund (Europe) LP
Blue Run Ventures (they also have a stake in Enpocket)

Drmyke, who are the other owners of Neomedia now?

It would be interesting to see just who every large owner is now, how many shares they have, and how they all fit together, if in fact they do.

Interesting to note IMO that Blue Run Ventures and Nokia Growth Partners compliment each other in their investments by investing in different phases of the same startups. Both funds are supported by Nokia Corporation. (for the dotsters)

http://www.telegraphindia.com/1050628/asp/business/story_4921639.asp

Interesting quote by Alex Meisl, made when Sponge was acquired by Neomedia:

"Alex Meisl, chief executive of Sponge, said that "one of the attractions of NeoMedia was they will allow us to operate in the same way as we have been. (he certainly got that right, operate the same way as they had been and with an extra $6MM in cash to help out just in case.) NeoMedia was an IP owning business and their backers realised the potential of mobile marketing. (Wait. Their backers? Neomedia is a public company, I thought 'we' were their backers. Is Cornell 'their backers'? Who are the BACKERS?) All the businesses they have aquired are profitable in their own right and will continue to operate as seperate brands."

"Our success proves that you don't need VC funding to make it and we hope that serves as a lesson to others. (Too funny, that Meisl guy nailed it again, who needs VC funding when Neomedia is around to give you money and a large stake in a public company in return for virtually nothing?) Mobile marketing may be harder work but ringtones and content is not the only way in mobile."

Meisl remains bullish about the untapped potential of mobile marketing and predicts that "In three years the mobile marketing industry could equal the mobile content industry."

http://www.160characters.org/news.php?action=view&nid=1953

Oh, it just goes on and on. I think I'll have to add an additional 'special' chapter to my upcoming E-Book about message board shenanigans. It will take a lot of additional research to get remotely close to having all the facts, but Chapt. 14: Neomedia: A Case Study in How to Get Rich Without Actually Doing Anything (Or, How I Learned to Use the Stock Market to Get Individual Investors to Pay For My House) should be interesting when the rest of the story is written.

jonesie