NEWS
iflix: What’s next?
29 June 2020
iflix heads into another hard week cushioned somewhat by the might of Tencent and many tens of millions of dollars the Chinese streaming giant has agreed to pay for the ailing Asian streamer.
But some shareholders are said to be angry at the way things have gone down, and tough questions are bound to be asked at how the Tencent money (we don’t know exactly how much, but we are told it’s less than US$100 million) will be divided among them.
And then what happens to everyone else involved who has not made it onto the A-list?
Tencent is likely to be first to hold out an olive branch, knowing full well that business will be tougher than it needs to be if local programmers and players unite against them... and side with rivals such as Viu, Netflix, Disney+ and iQiyi (unless or until Tencent acquires them as well).
Not everyone will be inside Tencent’s peace tent.
Our bet is that the VIP seats will be given to high-value local production houses that have driven iflix’s take up to the point that Tencent was willing to come to the table. And who will continue to supply original programming as Tencent builds its Southeast Asia business.
iflix has a trail of other content partners around the world with outstanding invoices, some of which were converted to equity and others which remain unpaid.
We have limited visibility into who they are and what they are owed. What we do know is that the novation letter sent out before the Tencent deal closed said very clearly that: “the acquiror will not assume any liabilities of iflix”.
In clause five, the agreement letter says “iflix shall continue to be responsible and liable” for the outstanding amount.
Legal opinion is mixed on what may happen next, including the possibility of legal action.
Meanwhile, theories continue to be offered on how iflix pulled off the sale.
A pre-pack insolvency is among the theories, which means assets/business were acquired and the rest may be liquidated.
As much as some may hate the idea, this is possibly the cleanest and most productive solution, one that allows 100+ people to keep their jobs, production houses to keep producing, and projects to keep going. Even if the whole process will be very messy for a while.
RELATED STORIES
24 June 2020: Sold: iflix goes to Tencent, Barnett stays on as CEO, big questions on who gets paid still unanswered
23 June 2020: iflix poised to...
iflix heads into another hard week cushioned somewhat by the might of Tencent and many tens of millions of dollars the Chinese streaming giant has agreed to pay for the ailing Asian streamer.
But some shareholders are said to be angry at the way things have gone down, and tough questions are bound to be asked at how the Tencent money (we don’t know exactly how much, but we are told it’s less than US$100 million) will be divided among them.
And then what happens to everyone else involved who has not made it onto the A-list?
Tencent is likely to be first to hold out an olive branch, knowing full well that business will be tougher than it needs to be if local programmers and players unite against them... and side with rivals such as Viu, Netflix, Disney+ and iQiyi (unless or until Tencent acquires them as well).
Not everyone will be inside Tencent’s peace tent.
Our bet is that the VIP seats will be given to high-value local production houses that have driven iflix’s take up to the point that Tencent was willing to come to the table. And who will continue to supply original programming as Tencent builds its Southeast Asia business.
iflix has a trail of other content partners around the world with outstanding invoices, some of which were converted to equity and others which remain unpaid.
We have limited visibility into who they are and what they are owed. What we do know is that the novation letter sent out before the Tencent deal closed said very clearly that: “the acquiror will not assume any liabilities of iflix”.
In clause five, the agreement letter says “iflix shall continue to be responsible and liable” for the outstanding amount.
Legal opinion is mixed on what may happen next, including the possibility of legal action.
Meanwhile, theories continue to be offered on how iflix pulled off the sale.
A pre-pack insolvency is among the theories, which means assets/business were acquired and the rest may be liquidated.
As much as some may hate the idea, this is possibly the cleanest and most productive solution, one that allows 100+ people to keep their jobs, production houses to keep producing, and projects to keep going. Even if the whole process will be very messy for a while.
RELATED STORIES
24 June 2020: Sold: iflix goes to Tencent, Barnett stays on as CEO, big questions on who gets paid still unanswered
23 June 2020: iflix poised to join Tencent stable? Streaming apps linked on Google & Apple app stores; no official comment yet
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