SAN FRANCISCO, CALIFORNIA--(Marketwire -05/08/12)- Bitzio, Inc. ("Bitzio" or "the Company") (OTC.BB: BTZO), a leader in mobile app development, today announced that it has entered into a letter of intent to acquire Knuckle Face, Inc., a UK based mobile game developer. This LOI marks another milestone in Bitzio's strategic growth initiative increasing reach and the collection of behavioral analytic data by focusing on mobile games, media, and the gamification of mobile apps and experiences.
Upon completion of due diligence and the execution of definitive purchase agreements, the Knuckle Face team and all assets will become a part of Bitzio, Inc. Terms for the acquisition will be announced post closing, however, Bitzio management has agreed to re-invest at least 50% of all revenue generated from Knuckle Face games to drive further marketing, development and growth of mobile games. The acquisition is expected to be completed using only restricted common shares and no cash outlay from Bitzio.
"Bitzio's approach has always been to find the best team members no matter where they roam. When we met Daniel Murray, Knuckle Face founder, we knew it was an instant fit. He is an entrepreneur with a clear and singular vision - to become the largest mobile game app developer in the world. This aligns perfectly with Bitzio's vision and growth plans. Merging Daniel's proven mobile gaming expertise with Bitzio's powerful app development, deployment and marketing teams, position us to be able to launch over 100 Knuckle Face game apps in the next twelve months," commented William Schonbrun, President and CEO of Bitzio.
Knuckle Face shared plans to continue creating mobile games centered around pop culture icons offering substantial marketing opportunities and "sticky" user features. Knuckle Face's flagship game, Pesky Penguins, similar to Rovio's Angry Birds, consistently earns excellent user ratings and has had as high as 10,000 downloads per day in recent weeks. There are four game apps currently in the last phases of development, which are expected to be released within the next 30 days.
Bitzio anticipates revenue to be generated through several channels including freemium (free to paid user) conversions, in-app advertising, premium in-app purchases (game enhancement features) and cross promotion of other apps through the Company's proprietary App Wall technology.
Schonbrun continued, "What Daniel has accomplished with virtually no marketing and no outside funding has been remarkable. Through this merger we are adding a strong team member with a shared vision, a great reputation in the gaming community and proof of success in a highly competitive mobile gaming market."
Daniel Murray, Founder of Knuckle Face, Inc. adds, "Having a great game idea is only one aspect of launching a really successful app. Longevity and monetization is the most challenging piece of any games success. When I met the Bitzio team, I was blown away at the level of sophistication and vision in their monetization and marketing abilities. Bitzio's team, infrastructure and technologies are what attracted me to become a part of the Bitzio nation."
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. For more information, visit www.bitzio.com. To learn more about Bitzio, watch their video or connect with Bitzio on Twitter and Facebook.
About Knuckle Face
Knuckle Face's mission is to create the largest network of fun, easy-to-play, innovative and popular cross platform mobile games on the planet. Knuckle Face plans to create a minimum of 100 mobile game apps each year for all ages, and keep the fans coming back for more.
"Bitzio", is a trademarks of Bitzio, Inc., "Knuckle Face" and "Pesky Penguins" are trademarks of Knuckle Face All other companies and products listed herein are trademarks or registered trademarks of their respective holders.
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.