SAN FRANCISCO, CALIFORNIA--(Marketwire -04/10/12)- Bitzio, Inc. ("Bitzio" or "the Company") (OTC.BB: BTZO.OB - News) today announced that it has entered into a letter of intent to acquire Motion Pixel Corporation Holdings, Inc. ("MPC"), an animation studio with operations in the U.S., Latin America and India.
Upon a successful closing of the acquisition, MPC will be a wholly-owned subsidiary of Bitzio and will likely be renamed "Bitzio Media, Inc." MPC's management team brings 15 years of experience working together developing high-end media solutions for global markets and brands along with a team of 35 animators, developers and managers based in Costa Rica.
While the exact terms for the acquisition will be announced after closing, the acquisition is expected to be completed using only restricted common shares and no cash from Bitzio. Upon closing, the MPC management team has agreed to invest over $1.25M to purchase Bitzio common shares and reserves the right to invest up to an additional $1M by May 30, 2012. A block of options will be reserved for key MPC staff members and the entire MPC team will be incented to earn both stock and cash bonuses by driving very significant revenue and securing key sports and entertainment properties during the initial 12 months after closing.
William Schonbrun, President and CEO of Bitzio, commented, "When we look at some of the most downloaded, top grossing apps, like Farmville or Mafia Wars from Zynga, Angry Birds from Rovio, Infinity Blade from Epic Games, or any of the football, soccer or golf games from EA, they all have something in common - beautiful graphics and animation."
"We believe the addition of the MPC team and animation studio will put Bitzio in position to compete directly for market share, reach and revenue with the top app developers in the world. This acquisition cements another piece of our global strategy and brings more amazing leadership and talent into Bitzio. Their focus and skills will create the foundation for the next generation of super apps we develop and market under our 'Bitzio', 'ThinkingDrone' and 'FreeTheApps' brands."
"The MPC team brings amazing relationships with Bollywood stars, major sports franchises, top athletes including Indian cricketers, and world renowned soccer clubs and their stars. Together we hope to leverage those contacts and prior working relationships with brands like Nissan, Trident and Powerade for significant new revenue streams for Bitzio. Working with MPC elevates Bitzio to the global stage and opens up new avenues to work with Fortune 100 brands, world class athletes and movie stars as ways of creating more reach for our brands, our apps and our developers' apps."
Manny Bains, CEO of MPC commented, "Our existing animation studio and development hub in Costa Rica is the perfect way for Bitzio to scale - and this is really the final piece of the puzzle to bring these great teams together. Costa Rica is only 1 or 2 time zones away from any place in the U.S. and has incredibly deep creative talent pools. We believe we will be able to scale these existing operations up very quickly as the Bitzio strategy shifts into growth mode in the coming quarters."
About Bitzio, Inc.
Bitzio's mission is to help mobile app developers get the full potential of their mobile apps by increasing consumer reach, conversion rates and bottom line profitability. Bitzio's strategic arsenal of methodologies and technologies allows mobile app developers to quickly develop, market and monetize their apps. The company aims to be responsible for the download of 1 Billion apps by 2014. "Bitzio", "ThinkingDrone" and "Everyone Apps" are trademarks of Bitzio, Inc. All other companies and products listed herein are trademarks or registered trademarks of their respective holders. For more information, visit www.bitzio.com. To learn more about Bitzio, watch their video.
About Motion Pixel Corporation Holdings, Inc.
MPC is a creative entity that has become the catalyst in bringing ideas, products and services to life. The team at MPC has collectively produced over 10,000 hours of animated content in all genres from movies, TV shows and advertising. Since 1997, while working together, the MPC team has been the recipients of 17 digital film and creativity awards. The studio boasts the region's best free-thinking talented artists, creating everything from storyboards to finished digital animated productions. To see examples of their work, watch their Demo Reel.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.