Sources inform “Globes” that Israeli start-up Cellenium, a developer of m-commerce systems, is on the brink of closure. The company recently laid off 35 of its 50 employees in three waves, in a restructuring effort to save the company an effort that has apparently failed. Cellenium declined to comment on the report.
Sources at Cellenium said the closure was inevitable because cellular providers, the company’s main customers, were pulling back from investing heavily to install its system. The reason is the need for substantial investment in marketing to educate consumers to buy goods via cellular.
The sources added that Cellenium CEO Shaul Shalev, who owns 50% of the company’s shares, and Elron (Nasdaq: ELRN), which owns the other half, sharply disagree whether to close the company, with Shalev insisting it stay open.
Cellenium has developed a two-way transmission system for authorized messages over cellular networks, intended mainly for m-commerce. In 2000, Dor Energy announced it would commercially launch Cellenium’s system, enabling payment for gas at the company’s filling stations by cellular telephone. Cellenium also has cooperation agreements with Pizza Hut, Ericsson (Nasdaq:ERICY), Leumi Card, Coca Cola Israel subsidiary Mashkar, and other companies. Cellenium has offices in Israel, Singapore and California.
Published by Globes [online] - www.globes.co.il - on November 11, 2002