According to a release from LiveUniverse, the company offered to acquire Stage6 prior to the site being shut by DivX 25 February. The offer was $11 million in cash & carriage plus an equity Stake in Stage6 and Promotion of DivX Software. LiveUniverse then claims that the DivX Board “refused to engage in any direct dialogue with LiveUniverse for over 5 days, and during this time, DivX shuts down Stage6.”
Despite the site being shut for nearly 2 weeks, LiveUniverse still wants to buy it and is appealing to DivX shareholders to pressure the company into selling. DivX shareholders can visit www.livevideo.com/SaveStage6” to take initiative and proactively push the Board to do the right thing for shareholders.”
LiveUniverse is claiming that “despite daily outbound calls and emails, LiveUniverse was and is unable to reach any of the DivX executives including General Counsel David Richter who LiveUniverse was originally referred to for the purposes of buying Stage6.” The go on to say that “Directors of public companies have a fiduciary duty to shareholders to try to get the best deal and represent their interests, first and foremost” and “DivX Board’s decision to destroy website and its community when there was and is a firm superior offer on table from LiveUniverse raises questions of whether proper sales process was followed.”
The one part missing from LiveUniverse’s statement is why? why do they want to buy Stage6? Sure, it was a great site with a ton of traffic, but it was only great because it offered a BitTorrent style smorgasbord of pirated content without the need to download it. Without the pirated movies, the traffic on Stage6 means nothing. Either LiveUniverse knows something we don’t about the site, or they’re taking a big risk.