This can be good or bad.
Platinum Studios Announces It Is In Negotiations To Acquire WOWIO, LLC
Los Angeles, CA - June 30, 2008 - Platinum Studios, Inc. (OTCBB: PDOS), an entertainment company that controls an international library of more than 5,600 comic book characters which it adapts, produces and licenses for all forms of media, today announced that it is in negotiations to acquire WOWIO, LLC, a leading online source for downloading digital books and comics. This acquisition would continue the expansion of Platinum Studios' global digital media distribution strategy.
Commenting on the attractiveness of WOWIO to Platinum Studios, Brian Altounian, Platinum's President and COO, said "WOWIO's commitment to its motto, 'free books + free minds,' has driven the WOWIO team to create a national digital publishing distribution network, both in the comics and traditional publishing world, that brings together creators, publishers and sponsors in a way that allows authors and publishers to be paid, while providing readers access to free books. We feel that WOWIO's unique business model has positioned them to be at the forefront of change in the publishing world during this challenging time for the entire industry. Platinum believes that acquiring WOWIO would be a major cornerstone of a global digital publishing distribution initiative, and that Platinum is, poised to enhance and expand WOWIO's business while bringing a true global distribution outlet to all of WOWIO's publishing partners, including Platinum Studios Comics.
"Platinum Studios represents an incredible opportunity for WOWIO at a time when the traditional publishing world is transitioning to electronic distribution channels and fresh revenue models," said Dr. David Palumbo, CEO of WOWIO. "We started WOWIO with a single purpose: to strengthen the relationship between content owners, content sponsors and content consumers. Joining with Platinum Studios would allow WOWIO to fulfill its founding mission of increasing access to free books to all and would significantly enhance reaching our goal of becoming the world's leading digital content distribution source for the publishing world
Final deal terms between the parties have not been reached but the companies hope a transaction can be concluded early in the third quarter this year.
This can be good or bad.
Personally, I'm surprised to hear about this given the fact that they seemingly have been having trouble paying their own personnel.
I get the impression they've been dealing with wowio for while now... probably more than the public has seen. Perhaps its connected to reasons why they've been a little short lately?
I hear people are starting to get paid. Also according the letter that got leaked to LITG, I think they're borrowing money to pay their debts, which is a little scary...
They must have some kind of plan. I have no idea what it is.... Seems like the main goal of indie publishers is to bank on Intellectual Property, lose money actually making comics. But if they're already low on dough, why this whole aquire aquire aquire attitude? What's cooking, I wonder!
Wowio seems to do alright. The few people i know who've put stuff out through wowio seem to make decent money off it (not exactly sure how that works)... so if publishers are making money, then the company MUST be making money.... right? So maybe they'll see better days with this aquisition.
One thing's for sure... Platinum is thinking BIG.
What I'm thinking is Wowio needs to go global because there advertisers are missing out on customers. With being global can open up for more global advertisers. However this can also mean that big publishers can publish on Wowio which isn't fair to the small press. IDW started the trend just beore Wowio went down.
Wowio was helping those companies whom weren't doing well in the print format.
Check out yesterday's Lying in the Gutters over at CBR for lots of good dirt on this whole situation....
Interesting that Rich Johnston claims to have known about the Wowio acquisition before it happened. Strange though that he only comes out to say so now. Is there somewhere that he had said something about it beforehand?
From the sound of it, he caught wind of it right before they announced it, and had planned on writing about it (hence his contacting both parties to no comment), and went on to insinuate that they may have announced it prematurely due to his knowledge and inquiries.
His contacts run deep, and he doesn't seem to pull many punches when it comes to exposing stuff (such as Platinum's letter to creators a few weeks back).
Wowio being down had been under some scrutiny as well...