Yeah1 Group, the Vietnamese media giant that owns a handful of multi-channel networks (MCN) on YouTube, announced on Monday it had completed a deal to sell a just-acquired MCN, following an incident involving its relation with the Google-owned video-sharing platform.
A California-based MCN for YouTube, ScaleLab has been sold back to its original owner, Brenner Pass Investment, an entity owned by ScaleLab founder and CEO David Brenner, according to Yeah1.
The Vietnamese media giant only acquired the U.S. company two months ago.
The sale of ScaleLab was announced days after it was made known that YouTube will end its content hosting services agreement with Yeah1 Group and its affiliates after March 31, due to violations of channel management policies by SPRINGme, a Thailand-based network of which Yeah1 owns 16.93 percent.
It took Yeah1 only three days to complete the ScaleLab sale on Monday after its board of directors made the decision on March 8, a company representative told Tuoi Tre (Youth) newspaper.
“Yeah1’s management have taken these actions in order to ensure the best interests for Yeah1’s shareholders, existing ScaleLab influencers, and the broader well-being of the YouTube ecosystem,” Yeah1 said in a statement.
“Yeah1 will have no further interest or involvement in ScaleLab.”
In January, Yeah1 announced it acquired ScaleLab for US$20 million. The sum included an upfront payment of $12 million, and the remaining $8 million was to be cleared later if business targets were achieved.
In Monday’s statement, Yeah1 said ScaleLab was sold back to its original owner for $12 million.
Before the deal announcement, Yeah1 stocks (YEG) continuously plummeted in six consecutive sessions from March 4 to 11, losing a total of VND86,300 ($3.7) per share, a record slide in the local stock market.
As of Monday, YEG stocks lost half of their value in less than nine months. Yeah1 became the first ever Vietnamese entertainment company to list on the Ho Chi Minh City Stock Exchange, with its stock closing the initial trading day at VND300,000 ($12.9) per share.
Yeah1 stock ended Tuesday’s morning session at VND158,000 ($6.8) a share.
MCNs are third-party service providers that affiliate with multiple YouTube channels to offer services that may include audience development, content programming, creator collaborations, digital rights management, monetization, and sales, according to the video-sharing platform.
Source: Tuoitrenews
