HBO invests in Quickflix

The Home Box Office (HBO) has invested $10m in Australia’s streaming video and delivery service Quickflix.

The announcement:

Home Box Office, Inc. to invest $10 million in Australia’s Quickflix
Quickflix Limited (Quickflix) announced today that Home Box Office, Inc. (HBO) has agreed to invest $10 million for a strategic stake in the Company. HBO® is the USA’s largest premium television company and a wholly owned subsidiary of Time Warner Inc., a global leader in media and entertainment with businesses in television networks, filmed entertainment and publishing. Quickflix has recently announced that it has entered into a licensing agreement with HBO for the streaming of TV series and films in Australia.

Under the terms of the investment agreement HBO will invest $10 million in Quickflix in exchange for 83.3 million preference shares at a price of 12 cents per share which are convertible to ordinary shares in the Company equating to a fully diluted interest of 15.7 per cent on conversion.  HBO will appoint a representative to the Quickflix board. The investment, which is fully endorsed by the Quickflix board, is subject to shareholder and ASX approval.

The board of Quickflix recommends that shareholders vote in favour of the investment by HBO and intend to vote any shares held by them in favour of the investment by HBO.

Quickflix Executive Chairman and Founder Stephen Langsford commenting on HBO’s investment said “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.”

Source: Quickflix press release