Newzulu signals mobile shift with Octiplex acquisition

Published at Sep 18, 2015, in Technology

Media tech player Newzulu (ASX:NWZ) has beefed up its mobile offering by completing a deal worth $1.15 million – and has already bagged its first mobile client.

NWZ told the market this morning that it had completed the acquisition of mobile development company Octiplex – allowing NWZ to bring mobile development in house.

It said the development of in-house mobile development would be crucial in the years ahead, citing data from Cisco Visual indicating the number of mobile devices connected to the Internet would be three times as high as the gobal population by 2019.

Cisco has also estimated that mobile will responsible for 62% of all Internet traffic by 2019, with global mobile data to grow ten-fold in that time.

Mobile video traffic is set to grow 13-fold to 2019, an annual growth rate of 66%.

It’s for this reason NWZ has been looking to develop mobile application and bespoke mobile solutions for clients in house.

The deal to acquire Octiplex is for an upfront cash amount of $574,330, with the rest being taken in NWZ with a 12 month restriction period.

NWZ has already gone some way to repaying the investment, announcing that it had bagged an application development contract worth $225,000 over a four month period.

The Optiplex deal also comes with a new mobile division, with Optiplex founder Damien Gosset jumping on board as the new unit’s senior vice president.

About NWZ

In short, NWZ is a way for news publishers to connect with citizen journalists who are on the scene of unfolding news.

While in the past, citizen journalists had to take the video, contact a newsroom, and then wait for them to make an offer on the footage, the Newzulu system takes a lot of the gruntwork out of the equation.

Citizen journalists simply log onto the Newzulu platform, upload the footage and then wait for the cash to roll in.

NWZ verifies the content to make sure it’s legitimate, and then pays the citizen journalist a fee for the content. Then a Newzulu partner such as Agence France Presse or Getty Images then onsells the footage to news organisations which have paid for access to the Newzulu library.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Facebook
Twitter
LinkedIn