Forever Broadcasting chairman John Josephs admitted this week that providing content for 3G phones was a waste of time, as he announced his company had been forced to wipe #2m off its investment in internet arm XY Network and its parent company Somethin'
Forever Broadcasting bought a 15 per cent stake in XY Network for #1m in July 2000 and subsequently purchased a 10 per cent stake in parent company Somethin' Else for #1.75m in May last year. However, in a trading statement issued last week the company said that it was 'prudent' to write down these investments by #2m.Josephs said: 'XY Network was set up to be a content provider for WAP and 3G mobile phones. But there aren't any 3G phones ... We've taken the view that the business is not worth anything and it's unrealistic to continue paying for it on our balance sheet.'The mobile phone venture had represented Somethin' Else's main asset. It has now cost several jobs. Somethin' Else director Jez Nelson said the move has had 'no effect on the core business'.The trading statement also revealed further woes at Forever Broadcasting, which owns five radio stations across the UK. The firm admitted a shortfall in turnover of around #400,000 and an 'impact of operating loss of a similar magnitude'.Executive directors and founder shareholders have managed to raise #900,000 to 'provide the group with sufficient cash for the foreseeable future'.