Sketchy New Mobile Firm Does Sketchy Reverse Merger

from the not-building-up-much-confidence-here-are-we? dept

Last month, the details started coming out on the latest in an incredibly overcrowded MVNO market, Xero, and they didn't look pretty. The company appeared to be very closely related to Gizmondo, the failed gaming device provider, which increasingly is looking like it might have just been some sort of scam. The execs at Xero mostly came from Gizmondo. The basic "story" ("free" mobile service supported by ads) is essentially the same, and now we can add questionable financial dealings to the list as well. There had been rumors early on that Xero had raised an astounding $300 million -- an amazing sum for a company with basically a me too product entering an extremely crowded market with plenty of questions concerning the exec team. Now, MocoNews is pointing out that the company has pulled off a reverse merger, to basically backdoor its way into the public markets without doing an actual IPO. While not every reverse merger of this nature is problematic -- it's usually a pretty big warning sign of what's potentially a pump-and-dump style scam. Considering all the questions surrounding this company, you'd think they wouldn't go for such a questionable strategy -- unless they really have nothing else (which, again, would be a red flag). Hopefully the next thing won't involve paying these execs exorbitant salaries while giving them insanely expensive luxury cars for them to race around in -- leading to all sorts of other trouble. It's also worth noting that the original story on Xero mentioned that former Gizmondo CEO Carl Freer was helping Xero raise money in Los Angeles. Of course, perhaps part of the reason he was in LA, rather than the UK, was because his former lawyers back in Great Britain are suing him for nearly a million dollars in unpaid fees. Really adds credibility to the company, doesn't it?

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    Tin Ear, Apr 12th, 2006 @ 4:13am


    You would think that with $300Mill in assets he could pay a paltry $1Mill in fees...

    reply to this | link to this | view in thread ]

  2. identicon
    ibeetle, Apr 12th, 2006 @ 5:46am

    I am headed to EB Games right now!!

    MAN! I have to get to EB Games right now and cancel my Gizmondo pre-order. :0)

    reply to this | link to this | view in thread ]

  3. identicon
    Chief Elf, Apr 12th, 2006 @ 6:05am



    reply to this | link to this | view in thread ]

  4. identicon
    Real Dealer, Apr 15th, 2006 @ 7:06pm


    Boys, what if it work's... This could herald a new form of media... Keep an open mind. If the bastards pull this off it could be big!

    reply to this | link to this | view in thread ]

  5. identicon
    enzoman, Apr 18th, 2006 @ 5:43am

    XERO is ZERO

    Total Scam, all the players are Ex-Gizmondo, Carl Freer and Stefan Erickksen are the majority shareholders behind this. Just another Pump-n-dump like Gizmondo (see link Freer and Erickksen know their name is dirt so they are hiding behind the magic curtain now. Their plan is to steal the money and let the Ex-GIZ Exec's take the rap this time. They have not raised any money either...part of the scam. I would live to see that bank statement.Thats why they went to the Pink Sheets...there is no compliance to Sarbanes Oxley there. It's 300 million of Freers Bullshit.

    reply to this | link to this | view in thread ]

  6. identicon
    go big, Apr 18th, 2006 @ 9:42am

    Learn the facts

    Funny how not to many people that post here have any clue what they are talking about. Enzoman...why don't you get your facts together and then post. Try reading the SEC filings on Gizmondo and then come back to this site with an educated and factual post. It is ok to post opinion because you are entitled to yours, but don't post comments that have no factual evidence to back them up.

    reply to this | link to this | view in thread ]

  7. identicon
    Howard S, Apr 27th, 2006 @ 1:28pm

    reply to this | link to this | view in thread ]

  8. identicon
    Enzoman, May 19th, 2006 @ 3:43pm

    Re: Learn the facts

    Don't you guys hava a company to run, whay are you spending so much time in blogs trying to re-establish your street cred. It doesn't take a rocket scientist to read the LA Times everyday and get the same story. Buy the way, I didn't know they had a computer in County Jail. I guess we will be reading about the rest of the gang shortly. Where can I get a Commissioners badge? I hear you have a connect. And by the way, SEC does not stand for Super Educated Criminal. Tell Dietrich I said hello, oh I mean Carl.

    reply to this | link to this | view in thread ]

  9. identicon
    go big, May 30th, 2006 @ 2:03pm

    Re: Re: Learn the facts

    Enzoman. You said everything I need to know about your intelligence. If you get your info from the LA Times, you are not someone that should be posting as if you are educated. It is obvious you don't know much and have no idea how the media operates. It is so easy to say the stuff you do when you can hide behind a computer. You obviously did not read any credible sources of information...

    reply to this | link to this | view in thread ]

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