DURHAM—Motricity, which sells mobile wireless content, may be raising as much as $175 million to buy InfoSpace’s mobile business, according to the Triangle Business Journal.

The TBJ quotes unnamed sources who say the company is wrapping up a raise from private markets to purchase the Bellevue, Washington company’s mobile business. InfoSpace had mobile revenues of $30.8 million in the second quarter this year, but had a net loss of $3.6 million in its mobile segment. It exited the mobile content business in the quarter.

Motricity has not as yet responded to TechJournal South’s call for comment on the report.

Infospace revenues for the second quarter of 2007 were $70.5 million, reflecting a $25.3 million decrease over the second quarter of 2006. Of this decrease, $19 million was attributable to the exit of the mobile media business.

Infospace’s net loss for the second quarter of 2007 was $28.1 million, or 86 cents per share.

Motricity has raised more than $200 million in venture capital since its founding, including $50 million from Carl Icahn in February. No other venture backed firm in the Research Triangle has raised a similar amount since the now defunct Buildnet, which raised $140 million during the Internet boom years.

Motricity has said it has plans for an initial public offering of stock, but has not indicated when it might launch the IPO. It also says that much of the money it raised would go toward acquisitions.

Thus far it has acquired GoldPocket Wireless, which provides interactive services for TV shows.
Motricity says its business has expanded substantially over the past year, quadrupling its customer base to include some of the leading wireless operators and media and entertainment companies, including Cingular, Alltel, Sprint, Tracfone, MTV, BET, NBC, Universal Music Group, Warner Music Group, Turner and several others.

On the Web: www.motricity.com

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