Amp'd Mobile closes up shop
EmptyNEW YORK -- Mobile service Amp'd Mobile, which is operated on Verizon's network, has said that it will be shutting down at the end of July after filing for Chapter 11 bankruptcy last month.
Amp'd was originally set to shut down Tuesday after sending a text message to customers on Monday saying that the service would be disconnected. In a Q&A on its homepage, though, Amp'd noted that it will instead be "potentially suspending U.S. operations on July 31" after an 18-month run.
Amp'd, classified as a mobile virtual network operator, first filed for bankruptcy on June 1. After experiencing quick growth, the service was plagued by a young base that often didn't pay subscription fees. The bankruptcy filing said that nearly 80,000 of its 175,000 subscribers were "non-paying."
Last week, Verizon filed a court order looking to shut off the service because Amp'd reportedly owes the cable operator over $50 million. Later in the week, Amp'd began putting its assets on the auction block signaling that it was just a matter of time before the service would be finished.
On the Q&A page, Amp'd said it's "currently in discussions with several parties" about a possible sale.
MTV Networks and Universal Music Group had previously invested in the service. "Lil' Bush," a series of animated comedy shorts developed by Amp'd, now runs on Comedy Central.