Webcasting company Loudeye Corp [LOUD] has agreed to sell the assets of its media restoration services business Vidipax Inc to the unit’s management. Loudeye bought the subsidiary in June 2000 after it had raised $63 million in an initial public offering.
Loudeye will sell all the assets and certain liabilities of Vidipax to a company controlled by Vidipax’s general manager, the price will consist of $1.2 million in cash, with an additional $500,000 in cash depending upon certain performance targets being achieve med by the new owners.
The deal includes a two-year reseller agreement that allows Loudeye to offer restoration services to its customers.
The Washington-based company said it is exiting the media restoration business in order to concentrate its resources on strategic, core businesses where it can drive growth and improve margins and profitability.
Loudeye’s third-quarter results were disappointing. For the three-month period to September 30, it reported a net loss of $2.3 million, down from $4 million.
Revenue for the same period was $2.8 million, down from $3.6 million in the year-ago quarter.
However, it grew its cash and short-term investments to $19.4 million, from $11.8 million at the end of 2002.
This was helped by the $12.2 million cash injection it received in early September from unnamed institutional investors.
This article was based on material originally published by ComputerWire.