Ad tech business Videology has filed for chapter 11 bankruptcy protection, with Singtel-owned Amobee set to buy the business.
Despite the moves, local MD of Videology Chris Mooney says the filing won't impact the Australian business and the services it provides to clients and partners. He says the US business operates as a separate entity and it has not filed for bankruptcy protection in any APAC market including Australia.
“This filing will have no impact on the services we provide to our clients and partners and there will be no disruption to our business in Australia,” says Mooney, who will continue to lead Videology Australia as MD.
“We can confirm that Videology has no plans to exit the market and in fact Australia continues to be one of our most successful operations globally.
“We have a team of 10 full time employees based in Sydney, dedicated to our Australia business. This represents the largest compliment of staff since we launched the office in 2013. We have some fantastic clients in Australia and we remain committed to ensuring their success.”
Yesterday Videology announced that its US entity had filed voluntary petitions for relief under Chapter 11 of the US States Bankruptcy Code. Concurrent with the filing, Videology announced that it has entered into a conditional asset purchase agreement with Amobee.
Videology is the latest ad tech business to run into difficulty, following Rocket Fuel’s plummeting share price and job cuts before being sold to Sizmek last year. Despite saying it was not cost-cutting, AdRoll also recently culled several staff.
See: AdRoll shares its new-found vision for Australia
Mooney says over the past decade Videology has established itself as a leading provider of the software for the convergence of TV and video, building a client list comprised of some of the biggest names on both demand and supply-side of the market.
“The industry is only in the early-stages of the TV and video advertising transformation that we were built to power, and it will take resources, capital and time to help transform a market as large as TV,” he says.
“The steps announced today will give us greater access to those additional resources and our focus remains on doing what is in the best interests of our stakeholders and we thank you for the opportunity to provide clarification.”
The business was founded in 2007 by Scott Ferber, who co-founded and later sold his online ad firm, Advertising.com, to AOL, for US$435 million.
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