Rightster, the multi-channel video network (MCN) that is listed on the London Stock Exchange, has announced it a strategic review that could lead to a sale of the business.
The company says its board will consider all options including the sale of the company, a strategic partnership, acquisitions to increase the scale of the group, corporate divestitures, or a new debt facility.
Rightster works with thousands of video content owners and publishers to help them build and monetize their audiences online.
Business Insider has contacted Rightster for further comment and we’ll update this article once we hear back.
On September 30, Rightster announced it was exploring ways of seeking additional investment in Q4 2015 to help it move towards “cashflow breakeven” and ensure it has sufficient working capital.
That announcement came as Rightster published its first half results. The company reported a pre-tax loss of £11.5 million ($17.8 million), which had widened from a pre-tax loss of £7.2 million ($11.1 million) in the same period the previous year. That came despite total revenues increasing 220% to £11.2 million ($17.3 million.)
In 2014, the company announced two significant acquisitions: digital video business Base79 for £50 million ($77.4 million) and Viral Spiral, which specializes in social video, for £4.1 million ($6.3 million.)
Rightster launched its IPO in 2013, raising £22.4 million ($34.6 million) by selling shares at 60p each. But its share price has dropped and dropped ever since and is currently trading at 10.50p a share.
- London Stock Exchange
Earlier this year, Rightster’s CEO Charlie Muirhead stepped down and was succeeded by the company’s chief content officer Patrick Walker, who had worked at Base79 when it was acquired by Rightster. Prior to that, he had spent eight years with Google and YouTube.
Rightster has marketed itself on being one of the few independent MCNs in the market, meaning its decisions aren’t swayed by owners that might be minded to encourage partners to use their own media.
Its competitor set includes Fullscreen, which is a joint venture between AT&T and the Chernin Group, Maker Studios, which is owned by Disney, and Machinima, in which Google has a stake.
Yet that independence has also come at a price. Rightster simply doesn’t have the scale of its competitor set. Base79 is just 27th of the top 100 YouTube networks ranked by subscribers, according to Socialblade. And it doesn’t feature on eMarketer’s rankings of the top 10 MCNs ranked by total views.