Teen site's lawsuit from UMG is the reason
The planned acquisition of teen site Bolt by online-video company GoFish has been called off, as Bolt continues to face a lawsuit from Universal Music Group.
GoFish was to acquire Bolt for up to $30 million in stock and share revenue from a deal that would emerge from a potential settlement between Bolt and UMG.
Bolt was earlier thought to be in final settlement talks with UMG. But those talks fell through, and GoFish said it couldn’t proceed with a purchase without a settlement in place.
“As the overhanging lawsuits against Bolt represent too much of a liability for GoFish at this stage of the company’s growth, GoFish’s board of directors and its management have decided not to proceed with the merger,” company said in a statement.
Ironically, one rationale for the sale was that GoFish could help support Bolt in its legal battle.
Bolt was going to concentrate more on original production as a result of the sale, but those plans have now been shelved.