Sep. 21, 2006

Xero Mobile isn’t expected to launch its service until January, but the mobile virtual network operator is already looking for a buyer.

Xero, which hopes to lure college-age users with advertising-supported wireless offerings, said it is negotiating to be acquired by an unnamed third-party management company.

“We’re excited about the opportunity to work with the new team,” said Xero Chief Executive Officer Roger Davis.

The company touts patented technology that automatically bills advertisers based on the number of marketing messages viewed by users.

But the Securities and Exchange Commission in June launched an investigation into “certain aspects of the company’s business,” and Xero’s service, which was expected to launch this fall, has been postponed until early next year.

Xero also said investors had bought out the shares of co-founder Carl Freer, who earlier this year ceased to be involved in Xero’s business operations.

Freer was one of the executives behind Gizmondo, a controversial European gaming company that filed for bankruptcy in January.

Shares of Xero bounced 10 cents, or more than 14 percent, to 80 cents a share following the announcement.

Source: RCR News