LiveWire Mobile woos carriers with Groove purchase

By Giselle Abramovich

March 19, 2008

Groovy deal

LiveWire Mobile Inc. has bought Groove Mobile Inc. for $14.5 million to meet wireless carriers’ demand for a portfolio of managed services.

The acquisition will result in the integration of services such as ringback tones, ringtones, full-track music and video downloads, all delivered through a one-stop-shop. LiveWire Mobile acquired all outstanding shares of Groove Mobile.

“With operators moving towards unlimited calling plans like Sprint and Verizon, companies like LiveWire Mobile will become increasing more important for operators to remain competitive,” said Christine Krajewski, director of marketing communications at LiveWire Mobile.

Through this acquisition LiveWire Mobile can manage all music- and video-related content from an integrated storefront to provide operators with a single managed service and subscribers with a superior music experience.

Groove Mobile has 12 global carrier customers including Sprint, 3 UK and Bell Mobility as well relationships with major music labels such as EMI, Sony BMG, Universal Music Group and Warner Music Group.

LiveWire Mobile recently added ringtones and full-track music and video download services to its mobile personalization suite.

The market for ringbacks is expected to reach $2.9 billion this year. The market for mobile music personalization services such as ringbacks, ringtones, full-track downloads and subscription music services, is estimated to touch $10.7 billion this year, increasing to $17.5 billion in 2012, according to Juniper Research. 

With the addition of Groove Mobile, LiveWire Mobile’s personalization products and services are now deployed across 42 carriers around the world, reaching more than 260 million subscribers, including 15 million active subscribers.

“This acquisition will significantly expand our leadership position in the rapidly growing mobile personalization market,” Ms. Krajewski said.