SeaChange Sheds FilmFlex Stake

VOD server and software specialist exits the VOD content aggregation biz in the UK and Ireland

Jeff Baumgartner, Senior Editor

December 31, 2007

1 Min Read
SeaChange Sheds FilmFlex Stake

A division of SeaChange International Inc. (Nasdaq: SEAC) has polished off some last-minute business for 2007 by selling off its stake in FilmFlex Movies to two other existing shareholders in a £9 million (US $17.8 million) cash deal.

According to an 8-K filed with the Securities and Exchange Commission (SEC) Monday, SeaChange's U.K.-based On Demand Group Limited (ODG) subsidiary sold its shares in FilmFlex to The Walt Disney Company and Columbia Pictures Corp. Ltd. (Sony Corp. (NYSE: SNE).)

FilmFlex is a video-on-demand aggregator that counts Virgin Media Inc. (Nasdaq: VMED) as its primary customer.

In connection with the deal, SeaChange said it will issue £1.6 million (US $3.1 million) in shares of SeaChange to former shareholders of ODG. SeaChange shares closed Monday at $7.23 each, down 20 cents (2.69%) for the day.

Prior to the sale, ODG owned 1,050,000 shares of FilmFlex. SeaChange did not explain its decision to shed its stake in FilmFlex, but noted that the deal prohibits ODG and its affiliates, including SeaChange, from "engaging in certain competitive activities" prior to Dec. 31, 2009, including the provision of any video-on-demand movies or films on any Virgin Media network in the United Kingdom and Ireland.

— Jeff Baumgartner, Site Editor, Cable Digital News

About the Author(s)

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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