It's back to the drawing board for Amp'd Mobil which has filed for Chapter 11 protection 17 months after forming. MTV Networks, Universal Music Group and other investors put $360 million into the venture. Like rivals Helios and Virgin Mobile, Amp'd took aim at young consumers willing to pay subscription fees for edgy content.
The L.A. Times reports that despite its hit animation "Lil' Bush Resident of the United States" last fall, the company owes $33 milion debt to Verizon Wireless and $16.4 to Motorola.
The official party line from the Amp'd press release spins the action as a step in the right direction. “As a result of our rapid growth, our back-end infrastructure was unable to keep up with customer demand. We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the market place.”
