Quickflix seeks investors by: MITCHELL BINGEMANN From: The Australian August 23, 2012 12:00AM
ONLINE DVD rental company Quickflix is on the hunt for investors and possible merger partners as the company steps up plans to grow into a serious player in the streaming content business.
The company has enlisted Chris Blyth of Venture Consulting to begin formal discussions with local and international content and marketing companies interested in a partnership.
Quickflix has set itself a target of signing up 1 million subscribers by 2016 and is looking for a range of content, marketing or investment partners.
"To do that, clearly it's going to require more funding and the best source of that is through strategic partners who can bring something else to the table, be that content or support in marketing or distribution," Quickflix chairman and founder Stephen Langsford told The Australian.
The company has increased paying subscribers by 59 per cent to more than 110,000 and annualised run-rate revenues to $20 million in the 2012 financial year. Quickflix's search for new investment follows a partnership with Time Warner's Home Box Office, which in February paid $10m for a 16 per cent stake.
...At that time, HBO bought 83.3 million preference shares for 12c each, which represented a 52-week high.
Since then, the shares have dropped to near two-year lows, but yesterday's announcement of Quickflix's search for new investors sent its stock up by 33 per cent to 5.7c. .
