After entering an agreement with Foxtel to resell Presto and then reversing it, Quickflix has reversed another business decision that would have seen it acquire a Chinese content production company. Wait, what?
That’s right: another Quickflix deal has fallen through the cracks.
Quickflix signed a memorandum of understanding to acquire an unnamed Chinese content company earlier on in the month.
While the name was a mystery, it had been said that it was a profitable company producing original Chinese movies and TV content, which also worked in partnership with other US studios.
The deal was subject to due diligence, and following that process, the company has pulled out of the acquisition process. In an announcement to the market today, Quickflix said that while this deal won’t proceed, it still wants to get into the Chinese market, even flagging plans to sell its streaming technology to other players:
Quickflix recognises 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 is also pursuing opportunities for licensing and operating its studio-accredited streaming platform as a branded or white-label service in other international markets.
This is the second content deal in about as many months that Quickflix has had to backflip on.
It entered a deal with Foxtel to resell the Presto product, before quietly pulling out due to technology issues. The Chinese content company deal is yet another deal that Quickflix hasn’t closed.