Vidaroo signs agreement to sell its online video platform to Skynet Technology Group, Inc. for $4.25 million with the potential to increase that amount by an additional $625,000 based upon future revenues.
ALTAMONTE SPRINGS, FL, July 12, 2013 -- Vidaroo (OTCPink:VIDA) today announced that it has signed an agreement with Skynet Technology Group ( www.mahala.us ) to sell the intellectual property for its online video platform for $4.25 million, consisting of $1.25 million in cash and $3 million in Skynet stock. The agreement also calls for an ongoing royalty payment of up to $625,000 based on future revenue generated by the Vidaroo platform. Skynet, based in Roswell, GA, operates a mobile payment services company based on a patent pending S-QR ä payment application.
The new purchase agreement is an outgrowth of the original revenue sharing arrangement announced May 15. “As we began working together, we discovered that there were certain practical issues that made purchase a better option for all parties,” says Tom Moreland, Chairman and CEO of Vidaroo.
“Skynet management was attracted to the flexibility of the Vidaroo platform and the ability to monetize video content,” he says. “I am of course extremely pleased with this new agreement. I’m looking forward to the value that this agreement provides to our shareholders beyond Vidaroo’s current enterprise value.”
“As creator and lead architect of the Vidaroo platform, I am very excited about the potential longevity and opportunities provided by Skynet’s intellectual property acquisition. Vidaroo’s native ad server and video syndication makes for a unique solution when coupled with Skynet’s S-QR ä payment technology,” says Micheal Morgan, member of Vidaroo’s Board of Directors.
According to Moreland, the purchase agreement also provides additional royalty revenue to Vidaroo from 24% of the gross revenues generated by Skynet’s operation of the licensed software up to $625,000.
“I am quite excited about the value we expect to generate from the combination of Mahala’s S-QR ä payment application and Vidaroo’s video management and distribution capabilities,” according to Sonny Fisher, CEO of Skynet Technology Group.
VIDAROO WEBSITE CONFIRMS THE SOFTWARE HAS BEEN ACQUIRED...
www.vidaroo.com
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