CONFIRMED: Nine Swoops On Quickflix

Written by Oonagh Reidy     21/07/2014 | 16:40 | Category: CONTENT & DOWNLOADS

Nine swoops on content streaming company

CONFIRMED: Nine Swoops On QuickflixNine buys stake in Quickflix streaming company.

Nine Entertainment Co. has acquired all of HBO's 91,165,092 redeemable convertible preference shares in the Perth based content provider, it confirmed after rumors circulated earlier today.

The deal means Nine owns under 10% of total shares in Quickflix. The move by Nine was opportunistic in light of the move to online streaming and on-demand movies and TV shows. Nine believes the small investment offers an attractive risk/reward profile.   

The value of the deal was not disclosed. 

The preference shares are not quoted on the sharemarket, but can be converted to normal shares at a discount rate. 

HBO, makers of Game of Thrones and Boardwalk Empire first bought the stake in Quickflix in 2012, worth $10 million, to pull the struggling TV on-demand service out of a funding crisis. 

HBO and Quickflix also have an exclusive content deal. 

Quickflix, which has yet to turn a profit,earlier denied knowledge of the deal, first reported in AFR. 

Shares rose 40% today to $0.040. NEC shares also rose slightly today.