Adderton tells PE Hub that he is still the big cheese. Regardless of his status it seems the company is going through a tenuous period.
A variety of sources say that there is trouble brewing, mostly around the issue of subscribers. Our sources say that lack of stringent credit checks and other issues have resulted in a ‘collections nightmare’ as one source put it. Amp’d’s normally attentive PR company has suddenly gone MIA.
Sources say that as a result of the subscriber kerfuffle, the company needs money sooner than it had expected. Sources say that employees are being cut, and the company is now trying to raise even more money. PE Hub, points out that there is an internal power struggle going on at the company, which has raised $350 million, and has 20 (crikey) people on its board.
“It’s a power stuggle,” says a source close to the company told PE Hub. “I think there’s been a lot of ebb and flow in terms of who’s winning at any given time.”
Rafat has also heard that the company is searching for “another big round” and he says there has been dissent between the company’s board and the CEO. Our sources say it is proving hard for the company to raise money, with its previous billing issues. We’ll add more when we learn more.