Mark Cuban buys stake in Vringo, shares soar

AP News
Posted: Apr 16, 2012 1:14 PM
Mark Cuban buys stake in Vringo, shares soar

Shares of Vringo shares soared Monday after it was revealed that billionaire Mark Cuban had taken a major stake in the ringtone company.

THE SPARK: According to regulatory documents filed Friday, Cuban has bought a 7.4 percent stake in the company. That makes Cuban, owner of the Dallas Mavericks, the company's largest shareholder.

Vringo, which went public in 2010, has yet to turn a profit. Its revenue more than tripled in 2011, but that still amounts to less that $1 million.

It's unclear what piqued Cuban's interest. He was not immediately available to speak Monday and the company declined comment.

THE BIG PICTURE: Vringo Inc. announced in March that its CEO Jonathan Medved had resigned and was being replaced by company president Andre Perlman. Later that month it announced plans to merge with intellectual property firm Innovate/Protect Inc.

This investment disclosure arrived a day after Mention Mobile, a social-gaming applications maker, said that Cuban invested an undisclosed sum in the company.

SHARE ACTION: The company's shares jumped $1.06, nearly 35 percent, to $4.10 in midday trading.

While the company's shares priced at $4.60 in its offer in 2010, they've failed to trade close to that price until recently. Its stock has traded between 68 cents and $4.35 in the past 52 weeks.