Kit Digital and Hyro ‘in administration’
The Australian arm of video and technology firm Kit Digital’ has been handed over to administrators along with its subsidairy agency Hyro Digital, the Sydney Morning Herald reports.
The move comes after Kit Digital was delisted from the US technology exchange NASDAQ.
The move is the lastest in a downward spiral for Hyro which was once one of Australia’s leading digital agencies. It claimed to be Australia’s oldest digital agency.
Recent years have seen Hyro go through a significant period of decline, which wasn’t helped by changes in ownership.
In 2010 Hyro was ranked bottom in a survey by Bannerblog of Australia’s digital agencies.
According to the SMH, the move has led to around 70 redundancies.
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I expect some clever corporate kung-fu to have them rise again debt free under a new name. Maybe Invigor?
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It’s also now being reported that BWM has bought Sputnik, the digital agency that KIT owned, sometime just before Christmas.
Look likes Sputnik avoided being dragged down. At least one agency was unscathed.
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Hi Pascoe,
We’ve just had this announcement from BWM. They tell me that about 30 people will move across from Sputnik: The announcement:
Belgiovane Williams Mackay (BWM) today announced it had acquired digital communications agency Sputnik on December 31.
Sputnik delivers digital strategy, creative and social media to clients including Sanitarium, GE Money, Google.
BWM chief executive officer Paul Williams said BWM had formed a close relationship with Sputnik through collaboration on jointly held clients Sanitarium and GE Money.
“Sputnik will continue to operate under its own brand, and its current business leadership with Nick Lewis as CEO, but we will be looking to collaborate on projects and clients where this adds value,”
Mr Williams said. “The Sputnik Melbourne and Sydney offices will be co-located with BWM Melbourne and Sydney offices to allow us to achieve synergies in administration and business support.
“Sputnik is a good fit for BWM because it complements our offer. As the lead creative agency, we develop ideas that get Australians talking. Sputnik extends our reach through digital channels and enhances our digital specialist capacity.
“So its business as usual for Sputnik clients, but with the added heft of Australia’s largest independent creative agency standing behind them.
“With BWM’s strategic and creative lead, Sputnik as digital production specialists, and our PR agency Cox Inall delivering social media community management, we have a compelling digital media offering,” Mr Williams said.