HBO to invest $10m in Quickflix

06/02/2012 - 10:36

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Time Warner subsidiary Home Box Office has announced it will take a strategic stake in Perth-based online DVD rental and content streaming business Quickflix for $10 million.

HBO said it would purchase just over 83 million Quickflix shares at 12 cents per share and would appoint a representative to the Quickflix board.

Quickflix’s board of directors has unanimously recommended shareholders accept the offer.

“We welcome HBO as a strategic investor in our company,” executive chairman Stephen Langsford said. “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.”

The investment by HBO follows last month’s announcement that the US-based TV network had signed a licensing agreement with Quickflix, giving it access to more 500 hours of television series, films, documentaries and stand-up comedy.

At 10:29AM Quickflix stocks had shot up 16 per cent, to trade at 11.5 cents.

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