Divx Founder Resigns From Board; Company Doing A Rethink On Stage6 Spinoff
By Rafat Ali - Fri 21 Dec 2007 11:06 AM PST
DivX (NSDQ: DIVX) certainly had its share of activity this year, even if most of it wasn’t all that great: it went public a little over a year ago, and has bought a few companies since then. In an attempt to arrest its financial troubles, in July, it decided to spin-off its user-generated video unit Stage6 into its own company. Now, the founder Jordan Greenhall, who was replaced as CEO with the planned Stage6 spinoff (where he would have taken the CEO position), has resigned from DivX’s board and chairmanship. No specific reason was given. The company expects to appoint a new chairman at the next board meeting.
Meanwhile, Stage6’s existence is now going through a rethink..the spinoff was supposed to be completed by end of this year. The company couched its second thoughts in this language: It “expects to take additional time to consider the alternatives available to the company related to the future of the Stage6 service.” It will decide by Q1 next year, it says. The company had allocated $4 million in costs for potential spinoff last quarter. More in the release.
Posted in: Broadband
Tags: jordan greenhall, stage6, divx,
