Video Jukebox Network is still searching for an investor.
The Miami-based cable programmer said on Friday that it did not accept a revised bid from Chris Blackwell’s Island Trading Co., adding that it was in discussions with other groups about “possible investments or acquisition of controlling interest” in VJN.
Back in March, Blackwell made a bid to invest $ 7 million in the company in exchange for a controlling interest. But after a closer look at the books, the investor looked to benefit from improving conditions by asking for warrants for 9 million shares at between $ 1.30 and $ 2.
At that point, said Tom Cardy, a senior VP at Communications Equity Associates, VJN’s investment banker, there was too much dilution for the board to accept. Another sticking point was Blackwell’s insistence on a standstill provision preventing VJN’s board from negotiating with other interested parties.
Earlier this week, three of the company’s major investors, including CEA, converted $ 3 million of debt into 3.5 million new common shares. But the backers gave up a senior debt position that would guarantee them first payment should a bankruptcy occur.
VJN counts Liberty Media Corp. and Newhouse Broadcasting Corp. as shareholders.