Motricity lost more than one third of its value today, following news that AT&T was terminating an agreement with the Bellevue-based mobile software company. AT&T’s portal agreement, which is being terminated, accounted for 42 percent of Motricity’s revenue during the first nine months of 2012.

Motricity powered AT&T’s MediaNet and ATT.net offerings as part of the portal agreement. It will continue to host AT&T’s AppCenter storefront.

Motricity already was performing poorly. It received a delisting notice from Nasdaq on December 13th which indicated that it would be removed from the stock exchange on today if it did not file an appeal.

Shares of Motricity are trading at about 43 cents, down 34 percent. The company now has a value of $22 million.

The company has seen a number of layoffs and executive departures in the past year, including last month’s departure of CEO Jim Smith and last year’s departure of co-founder and CEO Ryan Wuerch. It plans to seek approval for a reorganization plan in which it would become a wholly owned subsidiary of a newly-formed Delaware corporation by the name of Mobile Systems Corp. at its annual shareholder’s meeting on January 29th

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