Sizmek filed for Chapter 11 bankruptcy earlier this month
Sizmek has been thrown a lifeline, with reports Zeta Group plans on buying the embattled adserver’s DMP and DSP for around US$36 million.
Sizmek filed for Chapter 11 bankruptcy earlier this month.
The company’s board of directors confirmed it along with seven affiliated debtors had initiated Chapter 11 proceedings in the US Bankruptcy Court, a move taken to preserve company value while it looks to find alternative business funding arrangements. The group includes X Plus One and Two Solutions, Point Roll, Wireless Artist and WirelessDeveloper.
The company is claiming debtor’s aggregate debt is just over $2.5 million and estimated both assets and liabilities to be worth at least $100 million. Its top five creditors among a list of 60 unsecured claims are Index Exchange ($8.9m), PubMatic ($7.3m), OpenX Technologies ($5.9m), AppNexus ($5.2m) and Google ($4.5m). The company estimates between 1000 and 5000 creditors in total.
Sizmek is one of a number of adtech companies to be acquired by private equity – this time Vector Capital – which picked up the business in August 2016 in a deal worth US$122 million. Yet according to a report in AdExchanger, Vector has been unwilling to front up further cash to support Sizmek’s business model. This, combined with softer revenues, led to the Chapter 11 decision.
According to Bloomberg, Sizmek filed a motion in the US Bankruptcy Court for the sale of ‘certain assets’ on April 19 and is seeking the Court’s approval for the sale.
Sizmek hopes to sell assets to Zeta Global Holdings, for a purchase price of approximately US$33 million to US$36 million, consisting of $10 million in cash, payable on closing; $5 million in preferred equity; and a share of the future collections on accounts receivable, specifically, 50 per cent of the first $10 million; 70 per cent of the second $10 million; and 60 per cent of all remaining collections.
Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu
I’ve been a long-time fan of renowned effectiveness experts, Peter Field and Les Binet, and their work. But while their approach is clearly important, the marketing leader’s challenge to deliver effectiveness more often lies in organisational structure. I see the bigger question being whether a marketing chief has a seat at the executive table, and the ear and respect of the CEO and company board.
Every flagship smartphone in Australia includes hardware and software purpose-built for AR. A huge audience is ready and waiting. We have an opportunity to craft extraordinary, innovative work. But to get there, we need to push our creative thinking a little harder, writes Gil Fewster.
There are five tell-tale signs your brand needs to take a long hard look at itself.
In this bonus last episode of this new podcast series, BrandHook MD, Pip Stocks, talks with former ANZ group general manager of marketing, Louise Eyres, talks about the importance of thinking like a customer and using intuition to solve customer painpoints.
Why it's important for me to know that? I don't get it, sorry.
James Fogle
7 things you need to know about Facebook's mood experiment
Info graphic have proven to be very useful to create brand awareness and drive traffic. Thanks for sharing these Information.Graphic Desi...
Govind Dadhich
Image intelligence:10 must-see infographics for marketers
Best web hosting packages Vancouver WA understands that only technical support and domain associated email address can bring huge leads ...
Radiata Solutions
6 Ways to ramp up Social Media to Your Web Design
I had the same vision about change from CX terminology to HX. Even with almost the same title: 'Forget customer experience...' https://ww...
Ekaterina Khramkova
Forget customer experience, human experience is marketing's next frontier
Thank you, so do I.
David Freeman
Sustainability of message: H2coco founder's commitment to consumers