Quickflix has pulled the plug on its acquisition of a Shanghai-based film and television company as a result of due diligence undertaken into the business.
Quickflix announced a non-binding memorandum of understanding (MoU) with the Chinese company on 5 August as it eyed the lucrative Chinese market. However in a statement to the ASX this morning, it announced that following due diligence of the company and advice received into relation to Chinese regulation and restrictions, “it will not be proceeding with an acquisition.”
Quickflix said it “recognises the distribution of content into China and of Chinese content to the rest of the world is a significant opportunity and it is continuing to develop a China strategy.”
Quickflix had to terminate a deal it had made with Presto in May to distribute its services in order to make the MoU with the Shanghai-based company.
The company said it is also pursing opportunities for licensing and operating its streaming platform as a white-label service in other international markets.
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