Seattle-based digital media software company RealNetworks has entered into a private placement agreement with Rob Glaser, the company’s founder, Chairman, CEO and its largest shareholder.
Glaser will acquire approximately 8 million shares of RealNetworks’ Series B Preferred Stock for approximately $10 million.
Glaser will purchase the Series B Preferred Stock at a price of $1.24 per share, the closing price of the company’s common stock on the NASDAQ stock market on February 7, 2020.
The price per share is the same price that the company’s shares closed at on Friday, February 7.
Following the transaction, in addition to his ownership of the non-voting Series B Preferred Stock, Glaser will own approximately 14.6m shares of RealNetworks voting common stock, or around 37% of the company’s outstanding common stock.
RealNetworks expects to close the transaction before market close today (February 10) and intends to use the net proceeds primarily for working capital and general corporate purposes.
Houlihan Lokey LLC acted as the independent financial advisor to the Special Committee of the Board of Directors of RealNetworks.
The company recently published its financial results for Q4 and full year ended December 31, 2019, reporting full year revenues of $172.1m (inclusive of $106.3m from Napster) compared to $69.5m in 2018.
In Q4 2019, RealNetworks’ revenue was $43.4m (inclusive of $26.1m from Napster) down from $45m (inclusive of $27.3m from Napster) in Q3 2019.
“25 years ago I invested $1 million to help create what became RealNetworks. Today I am pleased to invest an additional $10 million of my personal funds into the Company.
“25 years ago I invested $1 million to help create what became RealNetworks,” said Glaser. “Today I am pleased to invest an additional $10 million of my personal funds into the company.
“I am making this investment because I believe the company has a very promising future ahead of it.
“I am particularly enthusiastic about Real’s SAFR Computer Vision Platform and GameHouse free-to-play story-based casual games.”Music Business Worldwide