Los Angeles – Thumbplay, a mobile entertainment publisher
whose offerings include a cloud-based mobile music service, is close to running
out of cash and nearing a deal to sell the company, PaidContent reports.
company’s music unit may sell to a "traditional media company," in a
deal that could close this week.
The price to be paid for the company’s assets
is thought to be "very low," according to PaidContent’s source.
music service is based on a platform developed by Aspiro, so music unit assets
likely comprise its subscriber base and associated revenues.
The fate of the
rest of the company’s business, which distributes ringtones, games and other
mobile content, remains unclear.
Founded in 2004, New York-based Thumbplay has to
date raised more than $41 million in financing, from backers including Bain
Capital Ventures, Softbank Capital, i-Hatch Ventures, Brookside Capital and
Cross Creek Capital.