HBO takes stake in Australian streaming provider

Michelle Clancy ©RapidTVNews | 06-02-2012

HBO has invested $10.7 million in Australian IPTV company Quickflix, giving owner Time Warner a strategic stake in the company.

Quickflix recently inked a licencing agreement with HBO for streaming the premium network's content in Australia. HBO will also appoint a representative to the Quickflix board.
"Quickflix is achieving strong subscriber growth and we’re rapidly rolling out our streaming service" said Quickflix founder and executive chairman Stephen Langsford. "The funds from HBO’s investment will enable Quickflix to execute its strategy for growth and profitability.”
Under the terms of the investment agreement HBO will receive 83.3 million preference shares at a price of 12 cents per share which are convertible to ordinary shares equating to a fully diluted interest of 15.7% on conversion. The deal is subject to ASX and shareholder approval and the board of Quickflix.