Last week we wrote about Mobihand not paying a developer that was owed over $100K because it was having cashflow issues. Now, Mobihand has publicly admitted that it is under “significant financial strain” and it’s looking at selling the company. What’s odd, is that accounting for a middleman style company should be pretty straight-forward. If you owe a developer $100K, you should have that money guaranteed because it’s backed by the consumers that bought the app.
The economy is rough these days and it’s a shame to hear of any company going out of business. Mobihand provided a great service for developers when it was significantly ahead of App World in terms of features.
An acquisition isn’t going to be easy. Third party app stores are losing ground to the manufacturers and the future is uncertain. The fact that BBX won’t support Mobihand or 3rd party stores, means the company wouldn’t be able to host any files for future BlackBerry devices. Perhaps an acquisition for users would be the most fitting.
MobiHand was founded seven years ago by software industry veterans committed to providing responsive and cost-efficient services to developers of mobile applications.
Through that entire period of time MobiHand has maintained a nearly perfect record of supporting and paying developers on a timely basis. With increased competition from very large, well-capitalized companies such as RIM and Google, in 2011 MobiHand has seen the need to invest heavily in developing new, differentiated services.
These new services combined with several new partnerships with large companies will result in revenue growth in the coming year. But developing and launching these new initiatives has created significant financial strain.
As a result, MobiHand is in the process of evaluating strategic alternatives which may result in the sale of the company to a larger, more well-capitalized partner. We expect this process to be completed before the end of this year allowing us to fulfill our obligations to all of our partners.