TV and video advertising software provider Videology has filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code, and has agreed a conditional asset purchase deal with Amobee, the company announced today.
The transaction was unanimously approved by Videology’s board of directors, though it is subject to court approval and other conditions before it completes. The Wall Street Journal reports the sale to Singapore-based Singtel’s Amobee is worth somewhere in the region of $45 million. However, the company said that other interested parties will have an opportunity to submit higher offers for Videology to evaluate before the deal closes.
Videology had been rumoured to be seeking a buyer amid a corporate restructuring which saw the company lose between five and six percent of its global headcount earlier this year. Representatives of the company at the time said the restructuring was designed to keep Videology lean and focused on its core offering, and CEO and founder Scott Ferber said in today’s announcement that the company is still confidant it can drive future growth.
“We are confident that today’s transaction represents the best path forward for Videology and is in the best interests of all our stakeholders,” said Ferber. “Most importantly, we anticipate it being seamless for our valued clients and partners, while providing Videology the financial stability and strategic position to drive future growth.”
Ferber acknowledged, however, that conditions are tough for Videology’s advanced TV advertising offering, and suggested it will take time and investment before the mainstream TV market is ready for Videology’s advanced TV product.
“The industry is only in the early-stages of the TV and video advertising transformation that we were built to power, and it will take resources, capital and time to help transform a market as large as TV,” said Ferber. “The bottom line is that these moves put us in the best possible position to achieve our ambitious goals, and we remain dedicated to our mission of driving outstanding advertising results for our customers during this process – without interruption.”