Quickflix, the local listed Netflix competitor, has gone into a trading halt pending an announcement over an “acquisition”.
Industry sources say this is likely to be a takeover offer for the local streaming media company based in Perth.
Quickflix told the exchange it was requesting an immediate trading halt “pending release of an update regarding a potential corporate transaction with an international party which may result in an acquisition”.
This trading halt will be in place no later than open of trading on Monday, August 3.
The local streaming media industry has been disrupted by the arrival of Netflix, which has quickly built a subscriber of 559,000 households since it launched on March 24.
Quickflix, which has a deep customer base for its DVD collection, has been cutting its content licensing costs and moving to a more premium model.
In May it announced a deal with Foxtel to distribute Presto. For Quickflix, this means it can continue to offer DVDs on subscription and premium video on demand content for an extra fee but gradually drop its general all-you-can-eat streaming content which will be replaced by Presto’s offering.
Quickflix recorded a 6% increase in paying customers to 123,553 in the March quarter. However, profits have been elusive. The local service saw its losses more than double to $8.592 million for the half year to the end of December.
More to come.
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