Mamma Slides as Cuban Sells

Updated from 9:44 a.m.

Mamma.com MAMA dropped 13% Friday after one of the company's best-known backers liquidated his stake.

Dallas Mavericks owner Mark Cuban reported the move in a schedule 13-G filing Thursday with the Securities and Exchange Commission. Cuban previously reported a 6.3% stake, with beneficial ownership at March 4 of 600,000 common shares of the Montreal-based company.

"I bought the company because they were focused on growing organically," Cuban told TheStreet.com in a Friday email. "They decided they wanted to grow through acquisitions, and to also do additional equity placements that would lead to dilution of existing shareholders. I didn't see that as the best approach, so I sold my shares."

The news comes just two days after the search engine operator sold $16.6 million worth of stock and warrants at a discount in a private placement. Mamma said at the time it would use the cash for acquisitions.

Mamma.com shares have enjoyed a wild ride over the last year. Interest in the company, which competes with Internet giants ranging from Google and Microsoft MSFT to AskJeeves ASKJ and LookSmart LOOK, surged in March after Cuban said he took a stake in the company. Cuban is highly regarded among Net investors because he sold Broadcast.com to Yahoo! YHOO for $4 billion during the turn-of-the-century tech boom.

Shares of Mamma had generally traded in the low single digits before then, but early March brought a day when the stock jumped 155% in mind-boggling volume. The SEC said soon after that it was examining trading in Mamma.com.

On Friday, the stock slipped $1.49 to $10.33.