Monday, April 14, 2008

Hobnox cuts local tech jobs, halts growth

By Efrain Viscarolasaga

After launching its North American headquarters in Waltham last fall, the home office of German online-entertainment startup Hobnox GmbH has scaled back its local ambitions.

As a result, five employees at Hobnox's 15-person Waltham office have been laid off, including president and COO David Wu, who was a co-founder of Tewksbury-based online content delivery provider Mirror Image Internet Inc.

The cuts mean that Hobnox has put on hold its plans to build a technology development team here, according to its vice president of U.S. strategy and content, James Fell. Despite the move, Hobnox's local contingent will continue to move forward, focusing on developing content for the site's channels, which focus on music, film and urban culture in the United States and Europe, according to Fell.

"We originally wanted to build a team (in the United States) that operated with some autonomy, but that wasn't working," he said. "The programming group here is fully intact and the business development group is still working to get partners. It's the technology side that's not growing here."

While the company does not plan on hiring any technology talent to the local office for at least six months, Fell said the company would revisit the idea of an independent office in the Boston area in early 2009. Alfred Tolle, a former CEO of Waltham-based Lycos Inc., remains CEO of Hobnox, based in Cologne, Germany.

Executives would not release funding details, but said the company landed a Series A round in 2007 from German investors, calling the round "pretty healthy."

Hobnox boasts four online video channels, all of which are in the beta stage. Its main focus, however, is music, through its "Music Intelligence" (mi145) channel. The firm has released some shows on the channel and landed deals with Experience Hendrix (operated by the family of the late rock guitar virtuoso) and local ska heroes The Mighty Mighty Bosstones.

Other executives still with the company -- some known for their ties to the local music scene -- include former O Positive singer David Herlihy (VP of legal affairs), former Cast Iron Mike singer Jake Brennen (executive producer), and former Read Yellow guitar player Evan Kenny (associate producer).