New Motion (NWMO), Doing Business as Atrinsic, to Acquire Ringtone.com for $6.25M in Cash

July 2, 2008 8:08 AM EDT

New Motion, Inc., doing business as Atrinsic (NASDAQ: NWMO), a premier Internet media and mobile entertainment company, today announced that it has acquired the assets of Ringtone.com, a popular mobile entertainment destination for downloadable mobile content and a highly valuable Internet domain which receives more than 1,000 signups per day.

In consideration for the assets acquired, Atrinsic will pay Ringtone.com's parent, W3i $6.25 million in cash, offset by $1.5 million in working capital for a net cash outlay of $4.75 million. In addition, W3i will receive a $1.75 million convertible note, with a 10% coupon and a term of one year. This note is optionally convertible by W3i into Atrinsic common stock at a 30% share price premium based on the average market price of Atrinsic's common stock for the 10 trading days preceding the close of the transaction.

Atrinsic reaffirms its FY08 pro forma guidance of $145-$160 million in sales and $15-$20 million in adjusted EBITDA.

New Motion, Inc., doing business as Atrinsic, Inc., operates digital advertising and entertainment networks in the United States.

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