MobiHand mulls strategic alternatives as financial struggles mount

Mobile app store solutions provider MobiHand is evaluating its strategic options in the face of "significant financial strain" resulting from efforts to bolster its platform against increased competition from the likes of Google's (NASDAQ:GOOG) Android Market and Research In Motion's (NASDAQ:RIMM) BlackBerry App World.

Writing on the MobiHand App-tivity Blog, chief technology officer Adriano Chiaretta explains that the company has invested heavily in building new and differentiated services. "These services combined with several new partnerships with large companies will result in revenue growth in the coming year," Chiaretta states. "But developing and launching these new initiatives has created significant financial strain. As a result, MobiHand is in the process of evaluating strategic alternatives which may result in the sale of the company to a larger, more well-capitalized partner.  We expect this process to be completed before the end of this year allowing us to fulfill our obligations to all of our partners."

Although Chiaretta writes "MobiHand has maintained a nearly perfect record of supporting and paying developers on a timely basis," developer Mobile Stream contends it is owed close to $164,000 from MobiHand sales of its EasyTether app. "The guys at MobiHand admitted the debt and said they were in financial difficulties. But they refused to work out a payment schedule," states a post on the Mobile Stream homepage. "They still run their business, so they obviously have some money. But that money is stolen from EasyTether royalties."

Founded in 2004, MobiHand powers more than 150 mobile application storefronts, also offering developers supplemental services focusing on payment processing, marketing and advertising. Last week, MobiHand announced an agreement with Barnes & Noble that extends the bookseller's Nook Apps platform to the MobiHand developer community--Barnes & Noble will leverage MobiHand's ChannelConnect service, which offers app stores a one-stop source to boost their content inventory alongside tools to more effectively manage app inventory and performance.

For more:
- read this MobiHand App-tivity Blog entry
- read this BlackBerryCool article

Related articles:
Barnes & Noble extends Nook Apps to MobiHand developers
MobiHand Classic App Store opens for Palm Pre
MobiHand opens app storefront for BlackBerry users