LiveUniverse is taking their attempt to acquire Stage6, the video sharing site that was recently shutdown by parent company DivX, to the masses. The company issued a press release this afternoon announcing that they have offered DivX $11 million plus equity for Stage6, but have been rejected by the DivX board, who apparently is refusing to negotiate.
[img src="" caption="" credit="" alt=""]In the release, LiveUniverse outlines its offer, which includes DivX retaining 10% ownership in a new video network that generates more than 400 million combined page views between its various properties.
You may recall that LiveUniverse, which is MySpace founder Brad Greenspan’s company, also recently purchased Revver and officially launched LiveVideo. By most accounts, Stage6 was reasonably popular, so it would appear Live Universe is trying to acquire another video site on the cheap and leverage their existing infrastructure to minimize costs.
In addition to announcing its attempt to acquire Stage6 to the public, LiveUniverse has also setup a page for fans of Stage6 to urge DivX to take the deal. When we posted about Stage6 shutting down, a lot of disappointed users jumped in on the comments, so perhaps LiveUniverse can play hero and cause a big enough uproar to force DivX’s hand.
Check out the full details of LiveUniverse’s offer after the jump.
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LiveUniverse's Offer to Buy Stage6:
LIVEUNIVERSE OFFERS DIVX $11,000,000 + EQUITY PARTICIPATION TO ACQUIRE ASSETS OF STAGE6.
-- Consideration is combination of cash, stock, online carriage, and
promotion of DivX software
1) LiveUniverse was and is willing to execute a definitive agreement
immediately and close the transaction within approximately 72 hours.
2) After acquiring controlling interest in Stage6, LiveUniverse will merge
Stage6 with four of its video entertainment websites that in aggregate
generate over 200 million page views per month. The combined entity
would be one of the top video sites online with over 400 million
monthly page views. DivX will receive a 10% equity interest in the new
entity.
3) LiveUniverse shall pay DivX $3,000,000 in cash.
4) LiveUniverse shall issue $5,000,000 in online advertising carriage to
DivX. DivX will promote its products and services across
LiveUniverse's network of music, video, and social networking related
websites receiving over 40 million unique monthly visitors. This will
result in less marketing money spent by DivX. (standard rate card)
5) LiveUniverse's Revver property will provide technical services,
including leveraging its Revver Wrapper technology to properly track
and share revenue with content creators. This will help to drive
interest in and grow the Stage6 site.
6) DivX/LiveUniverse Strategic Partnership over 36-month period: DivX and
LiveUniverse would partner to sell DivX products across the
LiveUniverse network. LiveUniverse would receive standard affiliate
fees and commit to promote DivX across its network of properties.
LiveUniverse will generate enough sales to earn at least $1,000,000 in
affiliate fees from sales of DivX software products over a 36-month
period. Any shortfall will require LiveUniverse to pay for the
under-delivery. Typically an affiliate fee is 15-20% of revenue
generated, therefore LiveUniverse would need to sell approximately
$5 million in DivX products during the agreement term.
7) LiveUniverse will also contribute a license for its new LiveVideo
community technology to vastly improve the Stage6 user experience and
grow the community.
DivX shareholders will receive 10% of the new company. DivX may have
the right to "put" this stock position to LiveUniverse to purchase if
it elects after 36 months, whereupon LiveUniverse would be forced to
buy this 10% position via the "put." Such "put" to LiveUniverse shall