Local video streaming platform iflix is reportedly in sale talks as a result of the company’s ongoing debt crisis.
As reported by Nikkei, iflix has appointed two executives from a distressed asset specialist to come onboard. Apparently, some of the potential buyers include investors from China and is expected to be sold by the end of this month.
For those who don’t know, iflix chairman Patrick Grove and co-founder Luke Elliot had officially left the board of directors in April, which has added fuel to the fire. Around that time, the company had reportedly cut its workforce to less than 65 people. The decision was made with the intention to reduce operating costs.
Word on the street has it that iflix was facing a debt crisis with a net loss of USD158.1 million (~RM675 million) in 2018. While in 2019, the company recorded a negative working capital of USD77.7 million (~RM331 million). Additionally, it is believed that the debt payment is approaching, which is on 31st July 2020.
Besides Malaysia, the platform is currently available in 13 countries in Asia including Indonesia, Thailand, Vietnam and the Philippines. No words yet whether they have received any new funding from investors.
Source: Nikkei.
