Stockholm-based mobile media firm Aspiro is off-loading its mobile entertainment division, because it believes the segment is trending downward.
The outfit, which provides music and TV streaming services to clients like T-Mobile, the BBC and Aftonbladet, says it’s selling the unit to Lobus Mobil AB for SEK 42 million (£3.5 million / $5.2 million).
In its announcement, Aspiro says: “In recent years, the market trend for services in Mobile Entertainment has been downward, and there is also a significant risk that additional market regulation may adversely affect the prospects of running this business.
“Accordingly, in addition to the purchase price, Aspiro has chosen to apply an earn-out model, which potentially, may bring the company a higher purchase price if the current valuation proves overly low.
Aspiro’s mobile entertainment unit provides music services, ringtones, games, mobile TV, videos and wallpapers. Most people are aware that the ringtones market has been waning, but the rest still seemed like growth areas.
But Aspiro’s mobile entertainment sales fell 11 percent to SEK 219.9 million in 2009, while its mobile TV, music and mobile solutions businesses combined rose.
CEO Gunnar Sellæg, in the announcement, says: “This divestment of Mobile Entertainment is a natural result of our strategy of focusing our investments on the WiMP music service, TV streaming for mobiles and computers, and on business solutions.”