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Social Networking - Thursday, January 31, 2008

Cornerworld To Pay $30M For Online Marketing Analytics Firm Sway

Dallas-based Cornerworld (OTC Bulletin Board: CWRL) says it has signed a letter of intent to purchase Sway Online, a social media marketing company that sells tools to advertisers to market and measure their products across various Net channels: HTML e-mail, podcasts, video syndication, RSS, and SMS. Sway's product, which it calls Shoutlet has been sold to a client list that includes eBay, Sara Lee, and Remington. Cornerworld says it will pay $30M in a combination of cash and stock. Middleton, WI-based Sway says it did about $2M in revenues last year. CornerWorld is a social media platform that it explains merges MySpace + iTunes + eVite + free email and some other bells like live broadcasting to help people control their image and get paid. Cornerworld currently enjoys a $1.3M market cap. This seems like an odd duck as Cornerworld gets almost no traffic and given that its model is in advertising that's not good. The company is run by a hedge fund manager so we imagine he is able to prop up the stock price to buy a company like Sway which actually has revenues. But given the emphasis on the stock deal we are scared for the... Continue...