Speaking of Disney’s digital content efforts, it is looking to sell of most of its stake in the failed digital movie delivery venture Moviebeam, according to its recent 10-Q, filed with SEC.
The company closed Moviebeam service in April, after tests in three cities didn’t get enough response, and has been looking to negotiate “a refinancing of the business with strategic and financial investors”, according to the filing. It is also looking to sell a majority of the assets in the venture, and retain a minority share: “If successful, a refinancing transaction will result in the Company making a further investment in the business while retaining only a minority interest in MovieBeam. Based on recent negotiations with a financial investor, the Company has concluded that any such refinancing will not be sufficient to recover all of its recorded investment related to the MovieBeam venture and has recognized $24 million of impairment charges during the third quarter of fiscal year 2005. In the second quarter of fiscal 2005, the Company had taken a $32 million write-down of its investment in the company that provides the technology used by MovieBeam.”
Related:
– Disney To Close MovieBeam in 3 Cities
– Disney Delays MovieBeam Expansion
– Disney’s Moviebeam Investment Reaching $70 Million Mark
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