Cyberplex CX Digital Fire Sale
Home » Industry News, Specials

Cyberplex CX Digital Fire Sale

house-on-fire

Cyberplex, the parent company of CX Digital, has announced that it’s selling is display business, Tsavo Media, as part of a financial fire sale.  Tsavo had recently been in the news after being accused by Yahoo of providing junk traffic, and being forced to repay monies based on this traffic.  Cyberplex, a public company, has been plagued by bad news, including dwindling revenues and a huge hit from the rebill scandals that rocked the performance marketing industry. Cyberplex’s revenue had decreased from $106M in 2010 to $55.5 in 2011.

Under the terms of the Transaction, the $33 Million consideration is to be satisfied as to: (i) $7,320,000 in cash; (ii) the assumption by the purchaser of the debt obligations of Tsavo Media and CX Ontario Holdings Inc. under the senior secured credit facility with American Capital Ltd. in the approximate amount of US$24,650,000; (iii) the assumption by the purchaser of a further debt obligation of a subsidiary of Cyberplex in the principal amount of $500,000 plus accrued interest, (iv) the transfer from Tsavo of certain internet domain properties valued at approximately $160,000; and (v) the transfer of 6,314,545 common shares of the Company held by former management of Tsavo Media, representing slightly less than 5% of the Company’s issued and outstanding common shares, back to the Company for cancellation. The purchaser in the Transaction is a company in which Ted Hastings, former President of Cyberplex, has a financial interest.

“Over the past 18 months the team at Tsavo worked extremely hard to overcome challenges presented by the situation at Yahoo!.” said Geoffrey Rotstein, CEO of Cyberplex. “But in the end, Tsavo in its current state does not hold strategic value to Cyberplex and continues to be an impediment to creating shareholder value at Cyberplex.”

Written by Pace Lattin

Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

There are three comments. Join the discussion.











Share/Bookmark this!

3 Comments

Leave a reply

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

CommentLuv badge

Recent Posts

Subscribe to PerformInsider

Get a FREE COPY of the Affiliate Marketing Insiders Handbook NOW! You'll also receive the free Performance Marketing Insider Newsletter and recieve weekly updates on what is going on in the affiliate and performance marketing industry. You'll learn it first at Performance Marketing Insider.

Your Email
 
Your Name



Advertise Here