Quickflix places shares in trading halt amid rumours it is set to be taken over
Struggling Australian streaming service Quickflix has placed its shares in a trading halt today, with the Perth-based company announcing to the market it was in the midst of a potential international “acquisition”.
At the time of the halt the shares in the company, which has struggled since the introduction of US giant Netflix and local rivals Stan and Presto, were trading at 0.2c, giving the company a market capitalisation of $2.3m.
In its statement to the Australian Securities Exchange this morning the company said it was requesting the trading halt “pending release of an update regarding a potential corporate transaction with an international party which may result in an acquisition”.
The company has undergone several rounds of capital raising, which have seen founder Steven Langsford sink more money into the business he created as a mail-delivery DVD service.
I’ve got $5 in my wallet, that’s about $4.90 more than the company is worth but I’m feeling generous, where can I place my bid? 🙂
It seems pretty clear that only Netflix (who has pretty deep pockets right now) would gain anything from this deal – “onshoring” their Australian operations through a local player. Doing it will makes the lives of Stan and Presto so much more difficult.
Are the Chinese buying this now ? The Warrant held by Nine will cost $10M plus the cost of any shares which will jump on news of any buyout . Netflix reckon they are big enough not to be concerned with Quickflix . Any other streaming operator in Australian is not an “International Party”
Netflix are more likely to buy pizza hut