A little more on the pending Platinum – WOWIO hookup. Comic Book Resources reports that WOWIO initiated the negotiations at the behest of their balky investors and that Platinum will probably be paying for WOWIO in stock. Wire stories confirm that negotiations are ongoing (not final) and that the current hope is to concludethe transaction in the third quarter (I read this not as striking a deal in the third quarter but completing the acquisition or merger in the third quarter. Striking the deal — reaching terms — would most likely occur very soon).
Greg Carter encourages everyone to read their WOWIO contracts closely. I second that. Let me be clear – I don’t want to cast aspersions on the people at Platinum — they are businessmen and while there are allegations of late payments circulating around I don’t have any independent confirmation of that right now. But having had a chance to observe Platinum for awhile now it’s pretty clear that their business model is to own and license IP. Nothing inherently wrong with that but it’s different than a publishing business model. WOWIO seems to be in the business of publishing (digital but still essentially publishing) and Platinum really is not. If Platinum buys WOWIO my expectation is that WOWIO will shift its business model to owning and licensing IP.