Motricity Takes Most Of The Hits With The InfoSpace Merger; Shelves IPO Plans

Lots of activity at mobile content and technology firm Motricity, which paid $135 million in October to acquire the InfoSpace mobile division. Now InfoSpace is taking over. As we reported yesterday, Motricity said it will be laying off 250 of its 600 employees and will move its headquarters to Bellevue to be with InfoSpace (NSDQ: INSP). Also, we have learned that the company has shelved IPO plans because revenues were not high enough and the company wasn’t profitable. Together, the two companies will have about $100 million in annual revenues and will be closer to profitability when the layoffs are completed in nine months. At that time, the company will re-evaluate its opportunities, whether that means going public, or being sold. More details on MocoNews.