Is NeoMedia Technologies For Sale?

NeoMedia Technologies, the global leader in camera-initiated barcode transactions for mobile devices, released an 8-K SEC filing last Monday which alluded to the potential sale of the company.

The filing states that during the next 18 months NeoMedia's CEO Iain McCready can earn a commission of up to 2.5% of sales proceeds for selling the company if the sale price is not less than $45M, with a commission cap set at a $200M sale price.

However, that's not to say that Iain can't sell NeoMedia for more than $200M. He can. Especially with a favorable patent review by the USPTO anticipated later this year.

NeoMedia Technologies has a suite of twelve issued patents covering the core concepts behind linking the physical world to the electronic world dating back to 1995. These patents cover various linkage methods including: Barcodes, RFID, Mag Stripe, Voice, and Other machine readable and keyed entry identifiers.

These patents were first licensed by Digital Convergence for $100M in 2000 to facilitate the launch of the :CueCat.

In 2001, NeoMedia Technologies formed a strategic alliance with Symbol, now owned by Motorola, and signed a worldwide agreement which gave Symbol the right to grant licenses to itself and third parties under NeoMedia's intellectual property. Symbol would later offer to buy NeoMedia's valuable patent portfolio in 2002 for $150M. The offer was declined however in favor of further developing the IP and growing the patent portfolio as a core component of NeoMedia's long-term growth and market strategy.

In 2005, Virgin Entertainment and NeoMedia Technologies entered into an extended licensing agreement, which saw Virgin license NeoMedia's patents through 2016.

There were even strong rumors that Microsoft was interested in purchasing NeoMedia back in 2005.

Flash forward to today, mobile barcode reading is an everyday part of the popular culture in Japan and Korea. The technology is just now beginning to emerge in Europe with North America not too far behind. With so many companies entering the mobile code reading space, and looking to carve out their niche, NeoMedia has positioned itself well with it's extensive patent portfolio and barcode technology, and will bring tremendous value to anyone interested in acquiring the company.

NeoMedia Announces Strategic Advisory Board

NeoMedia Technologies, the global leader in camera-initiated transactions for mobile devices, announced today that they will create the first NeoMedia Technologies advisory board and induct highly qualified industry veterans with deep wireless industry experience. The first inductees will include Clarence Wesley and Marc Lefar.

Clarence Wesley brings 22 years of management and development experience from the technology field. Mr. Wesley was previously the founder and general manager of Xerox Mobile Solutions and principal at Xerox Palo Alto research Center (PARC) in the New Ventures Group. Prior to this, Mr. Wesley was the VP and general manager of NewtonSource Wireless, a management consultant for Marakon Associates, and spent several years as a software engineer with EDS and as a marketing executive with IBM.

Marc Lefar was previously Chief Marketing Officer of Cingular Wireless (AT&T), responsible for all marketing strategy and execution. He had been with Cingular Wireless from 2003-2007 and currently operates his own technology and media consultancy, Marketing Insights. Prior to his position at Cingular Wireless, Marc acquired extensive experience in telecommunications through high-level marketing and management positions at GTE Wireless, Verizon Wireless, and Cable and Wireless Global. Mr. Lefar earned recognition as one of Advertising Age's Power Players, received the Marketing Top 50 Award, and lead Cingular Wireless to be a recipient of the accredited Gold Effie award. Marc currently serves on advisory boards of mobile marketing companies Air2Web and Local Solution's Network.

"The development of the first NeoMedia Technologies Advisory board has combined many talented and highly qualified executives with much to offer in the technology and telecommunication fields," states William J. Hoffman, CEO of NeoMedia Technologies. "All the members bring extensive knowledge of the wireless and telecom industries. We are happy to have their commitment to NeoMedia Technologies."