Future of sports site 20Four in doubt following departure of executives, website closure and defaulted payment to WeThinkMedia
The future of digital sports business 20Four is in doubt, following a website shutdown and note from stakeholder Chapmans Limited which told shareholders the business had not met financial expectations.
In a note made to the ASX in September, Chapmans, which has a 39% stake in 20Four, informed shareholders it would no provide investment in the company, adding the business was undertaking a change in leadership. CEO Chris Haigh left a couple of months ago, according to his LinkedIn.
20Four officially launched in 2017
20Four, which launched less than two years ago, was created to show what life is like as a professional athlete in competition and everyday life, and was launched by Haigh, former Fox Sports head of strategy, research and analysis.
In January this year, 20Four announced it would enter the ASX in a reverse take over, looking to raise up to $5m ahead of its stock market debut, thus valuing the company at $25m. A reverse take over takes place when a business wanting to be on the stock exchange acquires a low valued and lightly traded listed company already on the ASX.
At the time, the fundraising and listing was organised by Chapmans Limited, which then owned 39% of 20Four.
“Chapmans have been informed by the directors of 20Four that 20Four is considering fund raising options to support the business form new alternative sources, as well as holding active discussions around possible merger opportunities,” a note said in August.
“20Four has also confirmed it has taken significant steps to reduce operating costs while it undergoes these fund raising activities. 20Four has stated that it may be necessary to take the platform off-line for a period during this process, and that this may require the platform to be re-purposed to suit an adjusted or alternate revenue model.
“The directors of Chapmans wish to advice that Chapmans does not intend to invest or otherwise advance any further funds to 20Four.”
Since then, the website has stopped working. Facebook, Twitter and Instagram accounts exist, but have not been used in months.
Mumbrella reached out to a number of agencies and businesses that previously worked with Chapmans Limited and 20Four around the time of the ASX debut, to find out more about the future of the business and Chapmans’ stake. Mumbrella could not reach former CEO Haigh, nor could it reach Chapmans’ executive chairman, Peter Dykes or executive director, Anthony Dunlop.
When Mumbrella reached out to ad sales representative business, WeThinkMedia, it was informed the company ended work in August, after 20Four defaulted on payments.
“WeThinkMedia was engaged to help 20FOUR recover from a challenging start to their business and to develop a sales pipeline for a strong advertising proposition, however, we resigned from the contract once the business and its Directors defaulted on meeting their financial commitments to us,” the business said.
This was covered in depth by sports marketing publication Sponsorship News about two months ago, FYI:
https://www.sponsorshipnews.com.au/nl06_news_selected.php?R=1&act=2&stream=1-2-7&selkey=47296
https://www.sponsorshipnews.com.au/nl06_news_selected.php?R=1&act=2&stream=1-2-7&selkey=47304
User ID not verified.
Also covered here: https://digitalsportslabs.com.au/have-we-seen-the-demise-of-20four/
User ID not verified.