In my opinion, the whole business model was always built on one single premise - forget about building a profitable company and just keep raising capital until Netflix buys them out. Just get financed by shareholders and pay yourself handsomely with salary and "bonuses". But the a fell out of that when Netflix came here and weren't interested. Hence the situation now where he needs to find a buyer, probably at any price, to exit rather than go totally broke.
But now amazingly he might be able to find a buyer, albeit not Netflix. My guesses are iFlix out of Asia, or LoveFilm (owned by Amazon) from Europe. But my pick would be iFlix, as they might be able to come up with a deal to somehow retain the ASX listing, but as iFlix, instead of iFlix having to IPO. Some sort of backdoor listing/reverse takeover deal would do it. Be cheaper than an IPO anyway, and they would get the customer base. This is total speculation on my part though.
Its interesting to watch it all play out anyway.
QFX Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
