American television company Home Box Office (HBO) has invested $10m in Australian video streaming and delivery service, Quickflix.
The investment comes in exchange for 83.3m preference shares at a price of 12 cents per share, convertible to ordinary shares in the company equating to a fully diluted interest of 15.7% on conversion.
In addition, a representative from HBO will sit on the Quickflix board. The investment is subject to shareholder and ASX approval.
Quickflix Executive Chairman and Founder Stephen Langsford said on HBO’s investment: “We welcome HBO as a strategic investor in our Company. Quickflix is achieving strong subscriber growth and we’re rapidly rolling out our streaming service. The funds from HBO’s investment will enable Quickflix to execute its strategy for growth and profitability.”
In January Quickflix entered into a licensing agreement with HBO, a wholly owned subsidiary of Tim Warner Inc, adding previously run series such as Entourage, Sex and the City, The Sopranos, Band of Brothers an The Pacific to its roster. The company has also signed with Sony Pictures Television, Warner Bros International Brand Services, Lakeshore Entertainment and more.