German media company Pantaflix has commenced negotiations regarding the sale of its wholly owned subsidiary Pantaflix Technologies and signed a corresponding Letter of Intent.
The company intends to focus on its established production business and discontinue the platform business (streaming technology), according to a statement, adding that the acquiring party is to continue the business operations and fulfil the obligations with customers and partners.
Based on the current discussions, Pantaflix expects a loss from the disposal in the range of €7.0 million in its financial statements, given a symbolic sale price. Furthermore, the company has decided as a precautionary measure to recognise an impairment loss of approximately €1.5 million on loans and other receivables against Pantaflix Technologies.
As a consequence, the loss of half of the share capital must be reported in the separate financial statement of Pantaflix, while the transaction has no impact on the consolidated group financial statement. As required by law, the company will arrange a general assembly to inform the shareholders.
Pantaflix Technologies acts as a technological and logistical service provider along the value chain for film, video, music and entertainment, offering content licensing and self-distribution of premium content, the provision of video players for mobile devices and smart TVs, and other technological solutions. The target is to enable customers to create new business models, services and revenue streams.
