GlobalMedia.com Files for Bankruptcy
Last Wednesday, Vancouver-based streaming company GlobalMedia.com announced it had filed for bankruptcy in a Canadian court.
According Russ Law, a spokesperson at the law firm of Barnes, Kissack, Henfrey & George (BKHG), which has been appointed as a trustee, GlobalMedia.com will start looking to sell off assets around June 11.
Law said that there's no one left at the company and that executives have already departed. Calls to the company were not returned as of press time.
As trustee, Law said it will assess GlobalMedia.com's assets and will look at the company's financials to see if it can pay off debtors.The end of GlobalMedia closes a tough chapter on Internet radio providers. GlobalMedia started out as a provider of streaming services for terrestrial radio stations, which also included e-commerce capabilities, like allowing listeners to buy CDs. But after acquiring streaming assets of other companies and making deals with non-radio customers (like the NFL, AccuWeather and World Hockey Net), the company just couldn't find a sustainable revenue model. In December, GlobalMedia decided to focus on streaming video in the sports and entertainment industry and later sold off its radio customers to SurferNETWORK.com (www.surfernetwork.com).
As the company refocused, it got a new board of directors, new management, closed offices and was de-listed from the NASDAQ, going to the bulletin boards. It also entered into a complex deal with Australian companies, Radfly Corporation and Isis Communications Ltd., where it would hold a controlling interest in Isis, through ownership of 100 percent of the RCL shares.
Financially, GlobalMedia has been on shaky ground. It reported a $15,643,622 net loss for the second quarter of fiscal 2001. Sales were anemic — just $208,171 was reported from its second quarter 2001. As of mid-day Tuesday, its stock was trading at a penny.
As an interesting aside, Michael Metcalfe, co-founder of GlobalMedia and former president of the company, has apparently gotten away from streaming and started a motorcycle and scooter company called Motorcycles Galore (www.motorcyclesgalore.com).
Metcalfe could not be reached for comment.