Science & Technology

Facing NASDAQ delisting, RealNetworks CEO Rob Glaser makes bid to take company private

RealNetworks CEO Rob Glaser provides GeekWire a tour of the corporate’s workplaces in 2014.

Almost 25 years after streaming media pioneer RealNetworks went public in one of many hottest IPOs of the dot-com period, the corporate’s founder and CEO desires take the Seattle-based firm personal and turn out to be its sole proprietor.

The unsolicited bid, introduced Monday morning, would have Rob Glaser purchase the 62% of RealNetworks not presently owned by him or his associates, at a worth of 67 cents per share.

That quantities to a suggestion of $19.7 million, valuing the corporate at $31.7 million total. At its peak, in 2008, the corporate posted greater than $600 million in annual income.

The transfer comes as RealNetworks faces the looming menace of delisting from the NASDAQ for not sustaining a inventory worth of greater than $1 per share. RealNetworks has till August to adjust to the minimal bid worth requirement, in response to a February submitting by the corporate with the Securities and Trade Fee.

RealNetworks inventory closed Friday at 46 cents per share, and was buying and selling round 53 cents per share Monday morning following the announcement Glaser’s supply.

Two unbiased board members, Erik Prusch and Bruce Jaffe, will kind a particular committee “to carefully review and evaluate Mr. Glaser’s proposal and other available alternatives,” retaining unbiased monetary and authorized advisors for the aim, the corporate stated in an announcement.

“RealNetworks does not intend to disclose developments regarding this process unless and until the Special Committee and RealNetworks’ board of directors have approved a specific transaction or otherwise concluded its review of strategic alternatives,” the corporate stated.

RealNetworks’ new SAFR SCAN entry management system is the primary end-to-end {hardware} product developed by the corporate from scratch. (RealNetworks Picture)

Lately, RealNetworks has expanded into synthetic intelligence expertise, together with its SAFR pc imaginative and prescient and facial recognition merchandise.

The corporate in March introduced a constructing entry management system, SAFR SCAN, that makes use of its facial recognition expertise, the primary end-to-end {hardware} product developed by the corporate.

RealNetworks can also be within the informal video games enterprise beneath the GameHouse and Zylom manufacturers; sells companies to cell carriers and system makers; and continues to develop and supply its RealPlayer media software program.

Saying its first quarter outcomes final week, RealNetworks stated its income declined to $13.4 million, from $15.9 million a yr earlier, and its internet loss was minimize in half to $5.2 million.

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