Xero – We Told You So

Since Carlo is off taking a well earned break at the moment, I thought I’d take over as our resident Gizmondo/Xero correspondent to announce that the SEC is already investigating Xero, according to Moco News.

Xero, in case you missed it, is the semi-pheonix operation that rose out of the insane Gizmondo company that was wound up earlier this year. Many of the execs seem to be the same and the idea is to take the concept of subsidising handsets via advertising and this time run a free mobile service by running ads. This concept sounds great, but a couple of minutes and the back of an envelope proves that the model just doesn’t work.

As Carlo wrote back in April, it really does look like Xero will turn into Gizmondo, complete with financial shennanigans and an ingnominious end. And if history really repeats itself, the same team will reappear with another ridiculous amount of money to launch another hare-brained scheme.

One thing that does impress me though is their ability to raise money, despite dubious track records and a business concept as sensible as selling $5 notes for $10 each. Wow, think how much money you could make if you do a million transactions a year! Count me in.

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