Dec. 20, 2013, 12:58 PM
- With no higher bids having arrived, a bankruptcy court has given its final blessing to the sale of Velti's (VELT) mobile marketing ops to affiliates of Blackstone's credit unit. The deal is expected to close shortly. (PR)
- Velti struck a deal to sell the businesses to Blackstone in early November, in tandem with its Chap. 7 and Chap. 11 bankruptcy filings. Shares were voluntarily delisted from the Nasdaq a few weeks afterwards.
Nov. 26, 2013, 5:43 PM
- With the company in the midst of bankruptcy/sale proceedings for various business units, Velti (VELT) is voluntarily delisting from the Nasdaq. The company expects its delisting to become effective on Dec. 16. (PR)
- Dec. 16 is also the deadline for bids to be made for Velti's U.S., U.K., and Indian mobile marketing businesses, which are currently set to be sold to Blackstone's credit arm.
Nov. 21, 2013, 12:08 PM
- A U.S. bankruptcy court has signed off on the sale of Velti's (VELT -1.4%) U.S., U.K., and Indian mobile marketing businesses to Blackstone's credit division (GSO Capital).
- The deadline for new bids to be made for the unit is Dec. 16, and a hearing to approve the business' sale to the top bidder is set for Dec. 20.
- The sale was announced on Nov. 4, in tandem with Velti's Chap. 7 and Chap. 11 filings for various U.S. units.
Nov. 4, 2013, 8:33 AM
- Velti's (VELT) Mobclix mobile ad network unit has filed for Chap. 7 bankruptcy with a Delaware court, and other U.S. Velti units have filed for Chap. 11. Non- U.S. Velti operations are said to be "continuing operations as usual" for now. (PR)
- Velti also announces it's selling its U.S., U.K., and Indian mobile marketing businesses, as well as parts of its U.S. ad businesses, to Blackstone's credit division in a deal expected to close by year's end. GSO has promised to give Velti $25M in debtor-in-possession financing, and a $10M cash infusion.
- Mobclix has been delinquent with its payments to developers for some time, and has been contending with liquidity issues. Its wind-down will be administered by a court-appointed trustee.
- Shares -72.8% premarket to $0.08.
Oct. 15, 2013, 2:20 PM
- Krishna Subramanian, Velti's (VELT -12.5%) chief marketing officer and the co-founder of its Mobclix mobile ad network, has left the company and says he's now "working on an exciting idea that is keeping me up at night." News of the departure has plunged Velti deeper into penny-stock territory; bankruptcy fears have already been running high.
- Velti blamed its big Q2 miss on delinquent payments to developers relying on Mobclix (previous). The company has admitted it hasn't been able to "provide sufficient liquidity" for the business, which is now on the block.
Aug. 21, 2013, 1:35 PM
- Velti's (VELT -55%) market cap has fallen to just $30M after the company badly missed Q2 estimates, announced a $111M write-down, and backtracked on a promise to be cash flow positive this year. Needless to say, investors are questioning the mobile ad agency's ability to survive.
- On the CC, CFO Jeffrey Ross effectively confirmed VentureBeat's deliquent payment reports by stating the Q2 miss was largely due to a "failure to make timely payments to preempt publishers on our Mobclix ad exchange business, which resulted in a substantial decline in that business."
- He added Velti hasn't been able to "provide sufficient liquidity" for Mobclix, and thus expects it to continue declining.
- Ross also stated Velti "[remains] in violation of [its] debt covenants with HSBC," but is "in close dialogue with the bank" regarding liquidity needs.
- COO Mari Baker suggested Velti has "identified areas" where it can make additional job cuts (previous), as well as areas to make new investments.
Aug. 21, 2013, 12:45 PM
Aug. 21, 2013, 9:14 AM
Aug. 20, 2013, 4:50 PM
- Velti (VELT) blames the write-down on "a deterioration in collections" from customers in Greece and Cyprus; Deloitte has been hired to assist with collection attempts. The company has already divested assets in international markets with very high collection times.
- No formal guidance is given in the Q2 report, but Velti says it's looking to "become profitable and cash flow positive in 2014." The company previously guided for 2013 free cash flow of $5M-$15M.
- Velti says it has hired an i-bank to find a buyer for its Mobclix U.S. mobile ad network, and is exploring "other strategic opportunities" for the unit. VentureBeat recently reported Mobclix developer partners are up in arms over delinquent payments that may total $30M.
- Q2 free cash flow (exc. acquisition-related payments) was -$3.3M, and the company's cash position stood at $19.4M. Velti has already gone through with major job cuts. Can the company avoid Chap. 11?
- Shares -31% AH. CC underway.
- Q2 results, PR
Aug. 20, 2013, 4:16 PM
Aug. 20, 2013, 12:10 AM
Aug. 19, 2013, 5:35 PM
Aug. 2, 2013, 4:10 PM
- VentureBeat has followed up on its Wednesday report about cash-strapped Velti's (VELT -9%) delinquent payments to app developers using its Mobclix mobile ad network with a column that notes a developer in touch with collection agencies thinks Velti owes ~$30M, and that he and his peers might try to collect via a class-action suit.
- The developer: "Mobclix owes us pay from last October, and their last payment was in April."
- Velti calls the $30M figure "completely inaccurate," but adds it can't provide more detail because its Q2 report is due later this month.
- Velti's contracts with developers give it 90 days to make ad revenue-sharing payments. VentureBeat observes a Q1 6-K indicated Velti had accrued 3rd-party costs of $56.5M, much of which involves money owed by Mobclix.
Jul. 31, 2013, 1:16 PM
- More bad news for the mobile ad services firm: many app developers relying on Velti's (VELT +0.9%) Mobclix ad network are complaining about delinquent payments.
- A Google search for "Mobclix payments" drives home the extent of developer frustration, as does a forum created to deal with such complaints.
- The CEO of German developer Windfinder: "We contacted [Mobclix] and they made their last payment on Feb 6, 2013 for revenues generated until July 2012. They have not made any payments since then."
- Velti, of course, has been dealing with its own collection issues.
Jul. 18, 2013, 12:45 PM
Jun. 13, 2013, 12:45 PM
VELTF vs. ETF Alternatives
Velti PLC provides mobile marketing and advertising technology solutions that enable brands, advertising agencies, and mobile operators to implement interactive & measurable campaigns by communicating with & engaging consumers via their mobile devices.
Country: United States
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