Stage6 – The Plot Thickens: DivX Refuses $11 million Buy Out Of Dead Site

If you were to have a site that you planned to close, so that it will make you exactly $0 – zero dollars – will you refuse an offer from someone to pay $11 million for the dead site? The dead site in question is Stage6, a popular video sharing site that closed at the end of February this year. Well, DivX did exactly that. They ignored an $11 million offer to buy Stage6 five days before it closed. They’re still refusing it to-date – even though Stage6 is no longer generating any income for its founders and the offer is still open.

Is this weird or not? This continues the mystery that began with rumor that they were making millions from the Stage6 site at the time they closed.

Filed in News, Video.

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3 Responses to Stage6 – The Plot Thickens: DivX Refuses $11 million Buy Out Of Dead Site

  1. […] Stage6 – The Plot Thickens: DivX Refuses $11 million Buy Out Dead Site […]

  2. They are supposed to comment on this tomorrow afternoon when they announce their earnings. I plan to tune into the call live to see what they say. It will be interesting to see how they justify closing the site over selling it. $11 million is a pretty low ball offer, but if TechCrunch is right, I can’t understand why they walked away from the $90 million valuation. As far as the $8 million in tool bar revenues go, I don’t think it was ever that high.

    Before Stage6 was created DivX was already getting $5 million from the downloads. Stage6’s best chance would have been to set up a business model where consumers would have to pay $10 a month in order to download. For most people this wouldn’t have taken a lot away from the site, but the heavy users/pirates would have paid for this because of how quick DivX pulled copyright stuff.

    If they could have gotten 1% of their users to pay $10 a month, it would have made the site profitable. I bet that they could have found a lot more than 200,000 people who didn’t mind paying for other people’s bandwidth. I don’t blame them for getting rid of Stage6, but it would have been nice to see them sell it or try to build a business around it, so that we could have kept using it.

  3. florafaunarocks says:

    I just read your blog entry on this. Very interesting.

    And I agree. With the kind of traffic Stage6 was generating, the potential was tremendous. They should have worked hard on finding a way to monetize it.

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