Presto and Quickflix have signed off on a deal for Quickflix to distribute Presto's service, despite rumblings that Presto could be making a full takeover play for the Australian Securities Exchange-listed streaming service.
It announced the news on the ASX this morning, with Quickflix confirming that Presto “will be available within Quickflix”.
The deal is thought to allow Quickflix to sell Presto packages to its existing customers.
Quickflix went into a trading halt on the ASX yesterday, pending a major announcement, with some speculating that a takeover for the financially beleagured company could be on the cards.
However, sources have indicated to AdNews previously that a share preference deal struck between HBO and Quickflix in 2012 and then passed onto Stan owner StreamCo in 2013 could be holding back a takeover.
StreamCo currently holds about 91 million preference shares in Quickflix, with the conditions of the deal meaning that those options could be paid out at 12c each in the event of a takeover.
This would mean that if Quickflix was taken over, StreamCo could stand to gain about $10.5 million, which would be an extra cost for anybody wishing to take over the company.
However, as things stand, StreamCo keeps its options intact.
It is unclear whether Quickflix is receiving residual income from Presto, or whether an upfront deal has been struck between the pair.
More information to come.
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