Visto’s Lawsuit a Ploy for Investment Dollars?


In a previous opinion piece that we posted on BBCool, we asked “Why is Visto suing RIM now?” We threw a few suggestions like marketing purposes or a way to generate revenue for Visto, which has not yet posted a profit. Well we may have found out, The Independent UK has an article that Visto is toying with the idea of stock market flotation.

It claims that Visto’s CEO, Brian Bogosian is talking to banks about making Visto public sometime next year. Bogosian always a man with no lack of esteem for his company says that the IP would value the company at “billions of dollars”. But analysts say that a price tag of up to $400m for next year would be much more realistic. Dr Richard Windsor, an analyst at the investment bank Nomura, estimates that the company will generate revenues of $30m this year, a figure that would have Visto posting a lost (again).

To be fair to Visto, this time is probably the best and only time for Visto to go public. Waiting too long will mean more competition from Microsoft, Nokia, and not to mention giving more time for RIM to grow and capture market share. And with Visto being a “white label” provider it could prove deadly for the big three by attacking their software revenue which provides the highest profit margins. In the end, Visto is probably doing what’s best for them even if the lawsuit tarnish’s their public image. They need to raise capital to compete or they risk falling by the wayside as a casuality of the push-email war between Microsoft, Nokia, and RIM. Going public will atleast give them a fighting chance …