Vonetize Controlling Shareholders Cancel Equity Sale to Desilu Studios
After non-performance of Desilu Studios' acquisition deal for an equity stake in Israeli public-traded content-streaming tech company Vonetize, shareholders consider personal legal actions against Desilu's chairman Charles B. Hensley
TEL AVIV, Israel, Nov. 6, 2018 /PRNewswire/ -- Vonetize announced today that its controlling shareholders have decided to walk away from the equity-purchase deal signed with them by Charles B Hensley's Desilu Studios, Inc. The deal, signed earlier this year, had Desilu Studios buy a significant equity stake in public company Vonetize (TASE: VNTZ) as part of Desilu's plan to establish a re-booted film and TV studio, focused on technology and future-looking entertainment.
After over 6 months of non-performance by Desilu Studios to pay for the equity acquisition, and in parallel to pending legal actions announced by CBS against Desilu Studios and chairman Charles B. Hensley accusing him of mis-using the Desilu brand for a series of acquisitions and investments which were misleading, Vonetize's shareholders terminated the equity sale agreement immediately.
As part of the agreement, Mr. Hensley has provided personal guarantees and bank checks to Vonetize's shareholders, thus enabling them to take legal action to realize such collateral and personal guarantees on the deal.
Mr. Noam E. Josephides, Vonetize's Chairman and CEO, commented: "As Vonetize's recent growth has brought it to over 12 million TV users in our various content services, teaming up with a promising venture such as Desilu's seemed like a good partnership opportunity. But as Vonetize is a public company and out of responsibility to our shareholders, we no longer wish to endure the delays and dragging of the deal closing and the questions arising from the recent publication of legal actions taken against Desilu and its owner. Vonetize will continue to grow and expand our global reach and will always be open to other strategic partnership opportunities."
About Vonetize
Vonetize (TASE: VNTZ) offers video on demand (VOD) and over-the-top (OTT) content services, and technology platforms as fully-managed services for set-top boxes, smartphones, smart TVs and other Internet-connected devices. The company offers multiscreen end-to-end video content solutions including premium content from Hollywood studios; cloud-based digital video delivery of live and VOD content; content management systems; billing; CRM; and marketing/business intelligence (BI) analysis systems.
Media Contact:
Email: [email protected]
Phone: +1 (323) 207-7416
SOURCE Vonetize
Share this article