Interactive Video Technologies Buys Digital Lava Assets
Troubled enterprise streamer Digital Lava (www.digitallava.com) announced on Thursday that it was selling its assets to Interactive Video Technologies (IVT) for $700,000 in cash. IVT (
www.ivtweb.com) is a privately-owned, rich media service company, based in New York City, whose customers include HBO, Victoria's Secret, E! Online and Showtime.
"Given our financial position and inability to secure additional funding, we are pleased to have entered into this agreement with IVT," said Digital Lava CEO, Bob Greene. "This agreement represents a major step toward our goal of returning stockholder value. In addition, our current customers will continue to receive the same level of customer satisfaction and service and product availability that they have experienced in the past."
According to a statement, IVT will assume certain liabilities of Digital Lava, including accounts payable, and certain severance obligations to employees.
"Digital Lava has great technology, customers and people," said IVT chairman and CEO, Mark Lieberman. "We feel that the combination of our two companies will raise the bar for the entire video communications marketplace — both now and in the long term as we prepare to rollout our newest rich media software platform later this fall."
According to Digital Lava, it has been looking for financing and other alternatives to remain in business. After the search, it decided to sell assets to IVT and liquidate the remaining business of the company. Digital Lava said it is submitting a plan of liquidation to its board of directors. Digital Lava says that pending approval, the transaction will close by October 31.
Digital Lava has had difficulties earlier this year when it reported exaggerated revenue of its Firestream encoding stations. In March, it concluded an investigation that found what it called "revenue recognition issues." Around that time, the company laid off 22 percent of its workforce, due to the economic slump.
In trading on Thursday, Digital Lava's stock closed down over 45 percent.
Companies and Suppliers Mentioned