coinvestor and whats next

The cornerstone investor 'Co-investor' know the internet/software space very well.

I'd question their knowledge on telco and advertising, but I would suspect their due diligence has been thorough here.

I reckon they have an entry price on their equity of around 3 cps, although they are doing very well on the 15 percent paying debt, they have lent the company.

They were cornerstone shareholders in Travel.com.au, which owned the local version of lastminute.com.au, before Coinvestor succesfully created a bidding war between WOTIF and Webjet, and an utimate sale to WOTIF.

They were also succesful in selling another of their cornerstone positions, a NZ based dentistry practice software application owner, called Software of Excellence to a US company, for good monies.

Forget about the mobile business, as it won't exist in 3 years time.

My question, would be where can they take their permission based email/SMS marketing business from here? Will this advertising market always be niche, or can it break into mainstream advertising budgets. It just doesn't feel like a quality advertising medium?

Any thoughts??