Guvera subsidiaries placed into voluntary administration as parent company continues to operate
Struggling music streaming company Guvera has placed two of its subsidiaries into voluntary administration following the decision by the Australian Securities Exchange not to list the company.
The decision to place the subsidiaries – Guvera Australia and Guv Services which deal the Guvera business in international markets – comes after the ASX moved last week to block a float of the company planned for this week.
As a result of the ASX decision Guvera undertook a strategic review of its business leading to the decision to focus on the emerging markets.
The intended IPO had been widely panned by tech industry leaders including Mike Cannon-Brooks, one of the founders of Atlassian, who questioned the steep valuation for a company that made revenues of just $1.2m last year and lost $81m in the same time period.
Guvera’s scraped together a few cents and forwarded this press release?
Folks it is clearly dodgy. Yemee states that “since Guvera’s inception, we have been brand-funded and free, because, we understand that more than 90% of the music streamers in the world do not want to pay for music”. 1). If the business has burned over $185million investors funds and only has delivered revenue of $1.2 million then it is clearly not brand funded. If it were brand funded there would not be such a large loss. Its simple maths folks.
Going further Yemenee states: “as we look to focus primarily in key emerging markets, we take with us a highly scalable platform that caters to brands as much as it does for music lovers, artists and rights holders.” Targeting the emerging markets is a joke. The reason i say this is simple. Whilst yes populations and mobile phone adoption are large in these markets, advertising rates are incredible low due to the low income of workers in such markets. Know way in the world is Guvera’s model going to make money little own make any ROI to investors.
Good riddance to a joke of a music business and one suggestion to any brands considering promoting there brands by using the service. DON’T.
What a joke of a company. Anyone who was worth their salt left a few months ago – just search this on LinkedIn – a tell-tale sign. Their CEO is a dodgy businessman, their APAC Commercial Director was dumb enough to be quoted in this article and has no ad sales background, and they owe partners and vendors millions (e.g. Facebook c $1.7M). Good luck to even staying afloat in Oz. Surf’s up!