Moko Social Media goes into administration
Once promising Australian online media company Moko Social Media which promised to take on Google and Facebook has been placed in voluntary administration with Deloitte being appointed to run the business on May 31.
In recent years the company focused on developing mobile products aimed at the US high school and college student markets having shifted away from being a social media and digital content creator.
The company was listed on the ASX in 2007 as Loop Mobile and raised $8m in its NASDAQ IPO in 2014. The stock was delisted from the US market in June 2016 after falling below capital requirements.
Moko partnered with David Koch’s Pinstripe Media in 2015 to provide “the nation’s first and foremost source of informative and inspirational media” aimed at Gen Y following its acquisition of Perth-based content aggregator Tagroom.
Founding CEO Ian Rodwell stepped down in February 2016. His successor, former COO Shripal Shah resigned as both director and CEO last month following the company’s suspension from the ASX.
At its peak, Rodwell claimed the business would be valued at $1bn as it took on Facebook and Google in the social media sector. Instead Moko earned revenue of $84,830 for 2016, a decrease of 95% over a year. In the last quarter the company earned $33,000 against costs of over $1m.
Deloitte’s administrators are hoping to find a buyer for the US digital assets with expressions of interests closing on June 23.
