eSynch and Streamedia Cancel Merger

eSynch and Streamedia (www.streamedia.net) have announced that they have cancelled their merger after going through due diligence. According to a press release by eSynch ( www.esynch.com), both companies have "independently chosen not to pursue a merger."

Just two weeks ago representatives from eSynch and Streamedia told streamingmedia.com that the deal was taking place as planned, so it's unknown what occurred to stop the merger. When the merger was announced earlier this year, the companies didn't announce the financial details.

"We have great admiration for Streamedia and their corporate vision, and look forward to working collaboratively on future projects,'' said Tom Hemingway, CEO of eSynch in a statement.

One development earlier this week may have been a factor. Streamedia announced that it would be de-listed from the Nasdaq SmallCap exchange, because it failed to keep its share price above $1 over 30 consecutive business days.

Streamedia said it requested an oral hearing before the Nasdaq qualifications panel to appeal the decision, but didn't say when it would take place. If Streamedia indeed is de-listed, it will be traded on the OTC bulletin board market.

As of late trading Friday, Streamedia's stock was down 25 % for the day.