Yeah1 sets provision of $3.6 million for selling ScaleLab
21:51 | 18/06/2019 Print Article
After nearly a month of ceasing to work with YouTube, the board of Yeah1 Group (YEG) announced on the afternoon of June 15 to set a provision of 30 per cent, equivalent to $3.6 million, for receivables related to the capital transfer at ScaleLab LLC.
The transfer of ScaleLab took place shortly after YouTube announced the termination of the content storage agreement with Yeah1 and its affiliates, and the group accordingly sold 100 per cent of the shares in ScaleLab LLC to its previous owners.
|Yeah1 sold back ScaleLab to its former owner |
Previously, a large securities company had said that if it did not sell ScaleLab, Yeah1 may have to set a maximum of $12 million aside for provision, equivalent to its original investment in ScaleLab.
ScaleLab is a US-based company, bought by Yeah1 earlier this year for $20 million. However, two months later, Yeah1 had to sell it back to the former owner, founder David E. Brenner and Brenner Pass Investment Corp. to avoid the implications of the termination of the content storage agreement with YouTube.
Yeah1 also said that ScaleLab had regained the Multi-Chanel Network (MCN) license, but the company still deemed it prudent to make a provision for related receivables.
In 2019, Yeah1 set a revenue target of VND2 trillion ($86.96 million), equivalent to VND180 billion ($7.83 million) after-tax profit, up 19 and 10 per cent against 2018. After the multi-channel network incident with YouTube, Yeah1 redirected focus on channels that are owned and operated as well as producing and creating high-end content for distribution on YouTube.
Recently, Yeah1 also announced registering to buy 2 million YEG shares as treasury shares to reduce the outstanding share volume and restructure capital for the company.