The Huge Group has announced its intention to acquire a stake in emerging mobile media company Eyeballs Mobile.
Eyeballs Mobile is based in Cape Town, and has developed a unique media platform that delivers rich advertising content to GSM mobile subscriber handsets in an unobtrusive and non-invasive manner, providing an extremely attractive alternative to SMS and MMS advertising which are often seen as spam.
The technology developed by Eyeballs Mobile currently has intellectual property protection that provides it with a significant window of opportunity in the mobile advertising and media arenas.
Eyeballs Mobile MD Larry Katz comments: “The mobile advertising medium has even greater significance in developing markets where internet access is still limited. In SA the mobile medium has 80% reach potential. We have developed an application called Ringads which offers advertisers measurability in terms of reach, frequency and target audience as well as a cost effective and bandwidth lean solution. The application will facilitate transactional capability."
Huge Group CEO Anton Potgieter says: “The team at Huge is very excited about the future prospects of Eyeballs, and the synergies that it offers with existing opportunities within the Huge Group. The founders of Eyeballs have created a unique offering, which is technologically brilliant, and is a generation ahead of the game in the mobile media space. Just recently the press has picked up on the importance of this emerging market sector, and Huge and Eyeballs aim to take clear ownership of this space.”
Potgieter continues: “Mobile media will explode into an incredibly lucrative market in the very near future, and this adds another valuable dimension to the telecommunications-based portfolio of the Huge Group. It represents our commitment to augmenting our portfolio of products and services with value-added new age technologies.
“In the eight months since listing we have grown the Huge Group from its early beginnings as a corporate voice service provider, to its current mix of a well-balanced portfolio of both consumer and corporate services – with revenues in excess of one billion rand. Media is the next logical step for us, and is perfectly in line with international trends, where devices are expected to deliver an enhanced multimedia experience to the consumer.”
The deal, which will be settled by the issue of Huge Group shares, will see the Huge Group acquire 25% plus one share of Eyeballs Mobile from the existing Eyeballs Mobile shareholders. The value of the deal has not been disclosed. The transaction is subject to due diligence and the provision of further loan funding by Huge to Eyeballs Mobile. The Huge Group has also been granted an option by the vendors to acquire a further 15% of Eyeballs Mobile.