A bizarre Tweet sent by video streaming technology company Move Networks have prompted many to wonder if the company is close to shutting down. The Tweet reads: “Want some slightly used company assets and some amazing video streaming IP rights? $150,000,000 and it’s yours! Foosball table included.” NewTeeVee reports that the company’s CEO Roxanne Austin, the former president and COO of DirecTV, is resigning and that the majority of Move Networks’ entire staff was laid off.
Move Networks allows broadcasters to deliver live and on-demand high-quality video to PCs and other web-enabled devices. As of early last year, Move powered HD video streaming for a number of major media properties, including ABC, Fox, the Discovery Channel, and Animal Planet and even acquired Inuk Networks.
It’s unclear what went wrong at Move. The company has raised a considerable amount of money, over $90 million, from prominent investors such as Steamboat Ventures, Cisco and even Microsoft. While the company also suffered from layoffs last year, many startups were forced to trim the fat due to the recessionary economy.
As NewTeeVee reports, Move has lost a number of big clients over the past year and failed to raise a significant amount of funding. And it could be hoping to follow in the footsteps of fellow troubled video startup Veoh, which was sold to Qlipso earlier this year. From the Tweet issued today, it looks like Move wants to sell its assets completely in addition to folding. While Veoh and Move have very different businesses, both models reside in the online video space, which seems to be changing rapidly.
Update: Move Networks has confirmed that it is exploring the sale of its business, the change in management and that it suffered layoffs.
Move Networks, a global provider of comprehensive solutions that deliver live, multi-channel television over the Internet, announced today that it intends to retain a financial advisor to assist the Company in evaluating strategic alternatives, including a possible sale of the Company. No timetable has been set for completion of the review and there can be no assurance that any transaction will occur. During this process, Move remains committed to supporting its IPTV customers in the U.S, Europe and the Middle East….In order to conserve cash on hand during this evaluation process, Move announced a reduction of its workforce.