Billionaire media entrepreneur Alki David, who runs the FilmOn Internet streaming service, is among investors providing A$5 million (?3.95m) for Australian TV and movie streaming company Quickflix. The funds will be provided through a convertible loan and bond agreement and used by the company to support its restructuring plans and pursuit of subscriber growth. David and Tim Boyd, President of FilmOn.TV Asia, will join the Quickflix board.
Quickflix Founder and CEO Stephen Langsford said the company was delighted to secure this round of funding from international investors who understood the high growth sector in which Quickflix operated and the opportunity in the region.
David said his investment in Quickflix and joining its board was representative of his ?significant? investments in digital streaming and IPTV. ?Quickflix represents a key investment for me and the growth potential for the Company in the Asia Pacific market and beyond is staggering,? he added.
?This investment, coupled with recent changes to the Company?s board and management puts Quickflix in great shape to capitalise on its recently announced transactions with Blackberry, Xbox, Samsung, Optus, Kobo and Humax, all of which add critical mass to subscriber growth,? said Boyd.
The A$5 million loan will be drawn down in three tranches, with the second and third tranches being subject to shareholder approval expected to be voted on at a meeting in February.
Langsford confirmed at the company?s AGM late November that the company had engaged the services of US based digital media financing and M&A firm MESA, to assist in the hunt for a new and partner.
Sources suggested at the time that Quickflix?s new benefactor would most likely be of US origin which could potentially consider buying out the entire company.
Looks like they have manged to get themselves a last minute reprieve. Whether it leads to anything more remains to be seen, but glad to see they live to fight another day