Oy With the Moxi Already

Digeo Inc. may have Moxi, but the company has been undone by its chutzpah (Yiddish for "courage bordering on arrogance" or "brazen nerve") in the cable industry.

The cable set-top software player was founded in 1999 as part of Paul Allen's "wired world" strategy. Digeo merged with Moxi Digital Inc. in 2002 and set its sights on securing broad distribution among MSOs for its media center solution. Five years later, Digeo's only major MSO customer with meaningful deployments is Allen's own Charter Communications Inc. . Indeed, as of January 2008, Digeo's Moxi Media Centers were only installed in 420,000 homes.

Noting the obvious: MSOs aren't buying what Digeo is selling. At the Consumer Electronics Show (CES) earlier this month, the company pumped up plans to go directly to retail. (See Digeo Revs Up for Retail.)

And then promptly pulled the plug on that plan a few days later, coupled with the departure of its CEO and the sacking of half its workforce. (See Moxi Maker Digeo Slashes Staff, Product Line .)

Anybody see a possible fire sale on the horizon?

After gobbling up Sling Media Inc. , maybe EchoStar Holding Corp. could use some Moxi to fuel its set-top ambitions. (See EchoStar Slings at Consumers.)

– Michael Harris, Chief Analyst, Cable Digital News

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