Velti

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Velti
Type Former Public company
Industry Mobile Marketing and Advertising
Key people Alex Moukas, Chief Executive Officer
Products Velti Exchange
Services • Mobile media planning
• Mobile ad serving/ad routing
• Mobile websites
• Mobile applications
• Mobile commerce
• Mobile CRM
• Loyalty solutions
• Opt-in advertising
• Large scale promotions for mobile operators
Website www.velti.com

Velti was a mobile marketing and advertising company. In 2013 Velti filed for bankruptcy protection.

History[edit]

Velti was founded in 2001 by Alex Moukas[1] and Chris Kaskavelis[2] as a software and ASP provider serving the telecommunications industry. The same year, Nicholas Negroponte, then the laboratory chairman of Massachusetts Institute of Technology's Media Lab, joined the company as a non-executive director. In 2002, Velti gained Vodafone as a customer. By the end of that year, the company had reached 35 employees.

After a 2006 initial public offering on the London Stock Exchange's AIM Market,[3] Velti further expanded its U.S. operations with the opening of an office in New York. A San Francisco office was created the following year.

Beginning in 2007, Velti entered into a series of joint ventures and partnerships with the Interpublic Group to create Ansible, a mobile marketing joint venture.[4]

In 2008, Velti opened a new office in Beijing and made an investment in CASEE.[5] In India, Velti partnered with HT Media Limited, India’s second-largest media group, on a mobile marketing joint venture called HT Mobile Solutions.[6] 2008 also saw the opening of a new Velti office in Moscow.[7]

In 2009, Velti announced the acquisition of Ad Infuse, a provider of personalized mobile advertising in the U.S. increasing the company’s headcount to more than 400, including more than 200 technology staff.[8]

In 2010, the company announced the acquisition of Mobclix,.[9] A second 2010 acquisition added Media Cannon,[10] a developer of mobile advertising tools and technology. By the end of 2010, Velti had grown to more than 500 employees in 30 countries.

In January, 2011, Velti completed an initial public offering of 12 million common stock shares on NASDAQ under the trading symbol VELT. The IPO raised approximately $150 million.[11]

Financial troubles and bankruptcy[edit]

In late summer 2013, Velti was forced to write down nearly $111 million from Q2 2013 revenues, laying off nearly 200 employees and placing Mobclix on the chopping block to raise spare cash. These actions led to a stock nosedive to mere pennies a share, while rumors of bankruptcy swirled.[12]

On November 4, 2013, Velti files for bankruptcy protection.[13]

On December 16, 2013, Velti de-listed from the Nasdaq market after declaring: "The voluntary decision to delist from NASDAQ was taken following the Company's review of several factors, including its previously disclosed noncompliance with the minimum bid price requirements of NASDAQ. Also among these factors is the Company's inability to satisfy questions raised by NASDAQ concerning its ability to maintain eligibility for continued listing on NASDAQ following completion of its proposed sale of its mobile marketing business, as well as the Chapter 11 proceedings for certain of its U.S. subsidiaries and the Chapter 7 filing of Mobclix." [14]

References[edit]

  1. ^ "Alex Moukas of Velti PLC Executive Profile". Insiders.morningstar.com. Retrieved 2011-03-18. 
  2. ^ "Chris Kaskavelis Profile - Forbes.com". People.forbes.com. Retrieved 2011-03-18. 
  3. ^ Rafat Ali @rafatali (2006-04-10). "Velti To Raise $17 Million in IPO on AIM". mocoNews. Retrieved 2011-03-18. 
  4. ^ "IPG Launches Mobile Agency Ansible". ClickZ. Retrieved 2011-03-18. 
  5. ^ Media Asia, 23 May 2008, 08:26AM (2008-05-23). "CASEE receives US$6m investment from Velti - Brand Republic News". Brandrepublic.com. Retrieved 2011-03-18. 
  6. ^ "HT Media forms mobile marketing JV with Velti Plc - Corporate News". livemint.com. 2008-11-21. Retrieved 2011-03-18. 
  7. ^ "Velti PLC Announcements | Velti PLC: Trading Statement". Investegate. Retrieved 2011-03-18. 
  8. ^ "MediaPost Publications Mobile Marketing Company Velti Acquires Ad Infuse 05/13/2009". Mediapost.com. Retrieved 2011-03-18. 
  9. ^ "Velti Acquires Mobclix". Marketwire.com. 2010-10-01. Retrieved 2011-03-18. 
  10. ^ Dean Takahashi (2010-06-03). "Velti acquires Media Cannon to expand its mobile ad business". VentureBeat. Retrieved 2011-03-18. 
  11. ^ Mages, Kenneth G. (2011-01-28). "Mobile Ad Firm Velti Raises $150 Million In U.S. IPO « ROAM DATA Smart mCommerce News". Mcommerce.roamdata.com. Retrieved 2011-03-18. 
  12. ^ Edwards, Jim (2013-09-02). "How Velti, One Of The Largest Mobile Ad Companies On The Planet, Lost $130 Million «". BusinessInsider. Retrieved 2013-10-16. 
  13. ^ "Velti U.S. Unit Files for Bankruptcy Protection in Delaware". Bloomberg. 
  14. ^ http://investors.velti.com/releasedetail.cfm?ReleaseID=809980