ROK toys with Xero Mobile acquisition

Xero Mobile Inc., the mobile virtual network operator in terminal pre-launch mode, is being eyed by ROK Entertainment Group.
ROK CEO Laurence Alexander said he is negotiating to acquire Xero, which has long planned-and, thus far, failed-to deploy an ad-subsidized service for college students. Xero claimed to be in talks with two would-be suitors late last year, but has largely gone silent after the deals fell apart.
Xero hopes to give away handsets and airtime to users who agree to accept ads on their phones, and the company went public last year via a reverse merger. But the outfit has been investigated by the U.S. Securities and Exchange Commission and has apparently been idling as it looks for a buyer.
ROK closed a $7 million funding round before going public earlier this year. The developer targets mobile users directly with free, on-the-go video offerings as well as a place-shifting device dubbed the ROK Box. ROK also operates an online storefront that delivers mobile content via memory cards.
Xero’s founders include executives from Gizmondo, a European mobile gaming company that tanked in early 2006.