Late payments. Buy-out deal crumbles; Own3d TV shutting down as a result
When it rains, it pours and this week it seems we’re going to have to get the sandbags out to prepare for a flash flood. News has just hit of another casualty within the industry due to the economic hardship that seems to still be squeezing away.
Needless to say, it is no surprise to hear rumours of the company’s imminent demise, as it comes in just days after the proverbial watershed was broken and information emerged about Own3d’s unprofessional conduct. Both players affiliated with Own3d and various gaming organisations took to the Internet to vent about the terrible business conduct they had faced when discussing sponsorship payment, contractual agreements and content ownership
As much as we like to believe companies like Own3d keep everything in order, it is the opinions of players that they aren’t as squeeky clean as the image they like to portray.
Professional gamer and streamer Steven “Destiny” Bonnell, known for some of his more notorious antics, took to his personal blog last week to post a story simply entitled; “Own3d.tv – a beginner’s guide to being an asshole“.
For those not familiar, Destiny switched to Own3d TV from Twitch TV in late 2011 and has been with them ever since. Although praising Own3d tv when he first switched, his recent blog post depicts the company in a completely different light.
“The last paycheck I received from own3d was marked for July. I don’t believe I will ever be paid for the last 5 months I streamed with them. I’m trying to keep this as formal and non-sensationalist as possible, but it’s hard to imagine the sinking feeling in the pit of my stomach that I get
from even typing that out.”
He goes on further to explain that;
“On own3d.tv you had the option to subscribe to my stream for a fee of $5.00/month. I was promised to be compensated for 60% of the revenue generated from subscribers. I love and appreciate all of you guys that subscribed to me more than you will ever imagine, but I was never (and probably will never be) paid for anyone who subscribed to my stream. own3d.tv literally pocketed that money and kept it for themselves. I pestered numerous times on Skype for it, but was never given a flat answer”
Unable to keep up with competition
Questions have to be raised as to whether Own3d Tv bit off more than they could chew. The company had very little presence in the US relying heavily on European based servers and word of mouth, leaving ground for competitors Twitch TV to further establish their foothold unscathed.
It had openly been publicised that Own3d Tv had been searching for a US buyer to help fund an expansion of the business as well as help pay off debts that it was apparently rapidly accumulating.
However, it is understood that a recent acquisition by Machima fell through and one has to wonder if part of the reasoning behind this is because of the company’s dwindling opportunities to take a foothold in the US. Cadred’s anonymous source commented on this stating;
“After a buy-out fell through one week ago it looks like time is up for own3D who will be announcing the end of their operation in the coming days. Due diligence began in early November for Machinima to buy own3D for a price of five million dollars including debts, however due to a slipping position since that time this deal fell through on Wednesday 16th, last week. Having already failed to raise a venture capital round last summer, Own3D now plan to announce the end of all operations within one week.”
It is believed that Own3d Tv will now seek to liquidate all of its assets and declare bankruptcy in order to default its current debts owed to marketing firms and sponsors. Either way, it doesn’t seem to bode well for the players who are all potentially missing out on the streaming revenue they work so hard to attain.
We must stress that this story is currently speculation and there is no official word from Own3d TV or CEO Oleg Kogut. However, should all this information turn out to be accurate, we should be hearing something in the next few days.
We’ll be sure to keep you updated should any announcements emerge.