Synacor and Qumo have agreed to call off an all-stock merger that was announced in February.
In a joint statement issued Monday, the two video tech companies didn’t offer up their reasons.
“We mutually concluded after careful consideration that it would not be prudent to continue to pursue the combination and integration of our companies. We are confident this is the right decision for our shareholders, our customers and our employees. This decision will ensure each of Synacor and Qumu can dedicate the resources and focus to pursue opportunities in their respective industries and businesses,” reads a joint statement provided by Kevin Rendino, chairman of Synacor, and Neil Cox, chairman of Qumu.
Buffalo, N.Y.-based Synacor makes cloud-based user authentication technology for pay TV “TV Anywhere” products, as well as various OTT services. It’s client list includes Google/YouTube, WarnerMedia, Dish Network, T-Mobile and WideOpenWest.
Minneapolis-based Qumo makes video software for enterprise companies and touts 26 workers.
The two companies touted the merger as a deal that would create a combined asset with $120 million in revenue. Synacor stock holders would have controlled two-thirds of the combined company, with the Qumo moniker relegated to brandname status.
“This is a strategic and highly synergistic combination that creates operating software scale and accelerates growth,” said Synacor CEO Himesh Bhise back in February, when the deal was announced.
Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!
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