Huge grabs Eyeballs

JSE-listed telecommunications firm Huge Group's acquisition of a controlling stake in cellphone advertising company Eyeballs positions it well in the growing mobile market, says an analyst.

"It [the market] is definitely growing and it will continue to grow. There are a lot of opportunities for companies wanting to move into the mobile market; I'm seeing it done everywhere," Digital Bridges director Kate Elphick told Fin24.com.

Eyeballs delivers media advertising to cellular smart phones whenever a call or SMS is made and received. In return, users get Eyeball paybacks which can be exchanged for airtime and other select goods. This application is fully operational and set for commercial release in June.

In March 2008, Huge bought an investment stake of 25% in Eyeballs which it has now upped by 52% for an undisclosed sum, resulting in 77% ownership of the company.

"At first it was a simple investment, but now we're buying into the management team and the company's future prospects," said Huge chairperson Anton Potgieter.

"We've been watching the mobile market and the speed at which it's developing. We've seen the different applications entering this market and we believe in this product more than ever before.

"The potential upside of Eyeballs is immense, and the mobile advertising revolution, which has been predicted to be the next big thing after social networking, has not yet begun," said Potgieter.

Huge intends to keep a close eye on the ICT space in the future. "We're not looking at moving into anything specific at the moment, but we're keeping our options open and looking at everything.

"We always want to pick out the diamond in a heap of cubic zirconias," he said.

By: Jade Menezies