Cornerworld Acquires Sway For $30 Million
Duncan Riley
11 comments »
Cornerworld has acquired social media marketing company Sway Inc for $30 million.
The OTC listed Cornerworld is a relatively unknown social service provider that “combines social networking, content-sharing and business management tools to enable independent people to profit from their original digital works;” a full profile from DemoFall 07 can be found here.
Sway offers a central control platform for administering marketing campaigns across social media and “multiple web 2.0 platforms.” Their key products offer customers real-time results tracking across HTML e-mail, podcasts, video syndication, RSS and SMS mobile phone text messaging.
Update: The deal was terminated on May 1, 2008.
Sounds interesting, I wasn’t aware that you could track campaigns across multiple platforms, especially in real-time.
Interesting idea again
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hmm - I introduced Sway to Chris Shipley, and they presented at DEMOfall in Sept 07 - will have to tell her and the other DEMO folks about this (after just leaving their latest conference yesterday)
Where exactly did they get $30 million from?
http://www.sec.gov/Archives/ed.....10-qsb.htm
“For the six months ended October 31, 2007, we incurred a net loss of $1,099,377 or $0.02 per share, which was an increase of $1,096,498 from the net loss of $2,879, or $0.0 per share for the six months ended October 31, 2006.”
“Our revenue and gross profit for the three months ended October 31, 2007 was $-0- and for October 31, 2006 the revenue was $-0- and the gross profit was $-0-. We have refocused our business strategy towards a social networking web-based site.”
“As of October 31, 2007, we had a working capital deficit of approximately $252,609 and cash of $406.”
Sounds like the dotcom era all over again.
Wow. After reading their SEC report I found this part really interesting:
“We do not have the funds necessary to maintain our operations for the remainder of our fiscal year, and will need to raise additional funding.”
They don’t have the money to go another 2 months?
Most likely this is a reverse IPO. The healthier SWAY is basically going public and taking over Cornerworld. They’ve just spun the news to get a techcrunch post. Dastardly evil and sneaky. I like it.
How can a company without a proper domain, sway.com, could be sold for 30 million dollars? If I were to buy a company, the first thing I want is an appropriate domain name for my company!
Remember that email site for millionaires only? Do you remember their domain? Not me.
Goorsha, the domain is http://www.swayonline.com
six months ended October 31, 2007, we incurred a net loss of $1,099,377 or $0.02 per share, which was an increase of $1,096,498 from the net loss of $2,879, or $0.0 per share for the six months ended October 31, 2006.”
@ Goorsha comment #7
Yes, I agree with Goorsha that if I pay $30 Million for a company, the site MUST have sway.com as its domain. No negotiations here!
However, as you can see, the domain of this company called “sway” is swayonline.com. This is not appropriate and is a bad business plan.