KIT Digital

KIT digital, Inc.
Public
Industry IPTV
Headquarters New York City
Key people
 Peter Heiland
(interim) CEO
Fabrice Hamaide
CFO
Mark Christie
CTO
Website http://www.kitd.com

KIT digital was a video management software and services company before filing bankruptcy in April 2013.[1][2] The KIT Video Platform is the company's cloud-based video asset management system. KIT digital services nearly 2,500 clients in 50+ countries including some of the world's biggest brands. The company maintains corporate headquarters in New York City and principal offices in Atlanta, Buenos Aires, Ely, London, Los Angeles, Miami, Milan, Paris, San Diego, San Francisco, Stockholm and York.

History

In late 2007, Kaleil Isaza Tuzman purchased a controlling interest in ROO Group and became the company’s CEO and chairman of the board.[3] ROO Group changed its name to KIT digital in 2008 after financial restructuring of the company.[4]

KIT digital embarked on a growth by acquisition strategy and quickly acquired a number of players in the digital media IP video industry. In 2008 they acquired, Sputnik Agency, Visual Connection,[5] Kamera[6] and Morpheum.[7] In 2009, Narrowstep,[8] Nunet,[9] The FeedRoom[10][11] and Juzou. KIT digital was listed on the NASDAQ Global Market in August 2009 under the ticker "KITD". The key acquisitions facilitated KIT digital to become one of the largest video software and service providers in the world. In September 2009 KIT digital moved its global headquarters from Dubai, UAE to its European head office and technical operations hub in Prague, Czech Republic citing the European zone now represented in excess of 50% of the company’s revenue stream.

In 2010 the company bought the Atlanta-based live event broadcaster Multicast Media Technologies[12][13] and later went on to buy more broadcast and media asset management companies including Benchmark Broadcast Systems,Megahertz Broadcast Systems,Accela Communications and Brickbox Digital Media. By October that year, KIT digital was estimated to control 25% of a $500 million market for Internet video-management software.

2011 was a big year for KIT. In January they spent approximately 77.2 million dollars to purchase three social software and video companies, Kewego,[14] KickApps,[14] and Kyte[14] and KickApps CEO Alex Blum was appointed to the new position of Global COO of KIT digital to manage worldwide operations. A few months later KIT spent over 100 million dollars to purchase TXT Polymedia[15] for 34.4 million and IT software services company ioko[16] for approximately $74 million in cash and 1,509,805 restricted shares of KIT common stock, totaling $91.4 million.

Subsequent collapse

On November 21, 2012, the company announced errors that will force restatement of prior period financial statements and postponement of Q3 2012 results.[17] The 2009, 2010 and 2011 years and 1Q12 and 2Q12 will be restated; KITD says investors should no longer rely upon previously issued statements for those periods. The company says an event of default exists in a secured loan facility that has 11 mln. USD outstanding; that its cash balance has dwindled to USD 10.6 mln., and that cash burn is expected to continue. As a result, KIT is exploring "a broad set of strategic alternatives," including financing deals (virtually guaranteed to be dilutive) and a sale. It's also cancelling its 2012 shareholder meeting. Shares traded more than 50% down in after hours trading. The company announced on December 10, 2012, that it has received notice[18] from NASDAQ, because it has not yet filed 3Q results with the SEC. The company no longer complies with the continued listing requirements under Nasdaq. The NASDAQ stock market announced on December 11, 2012, that trading of NASDAQ:KITD shares was halted.[19]

KITD announced on April 16, 2013 that it would file for bankruptcy on April 24 with a debt plan supported by three of the largest shareholders. The company’s last financial statements listed a revenue of $107.3 million for the six months ended June 30, resulting in a $110.8 million loss from operations, including a $55 million goodwill-impairment charge. Jones Day, with a claim of $1.6 million for legal services, is shown as the largest unsecured creditor. The case is IN RE Chapter 11. KIT Digital, Inc., Case No. 13-11298 U.S. Bankruptcy Court, Southern District of New York (Manhattan).[20]

Isaza Tuzman left KIT digital in April 2012.[21]

Criminal actions

The collapse of KIT Digital led to a number of arrests, broadly alleging that the share price was fraudulently inflated by seeking to buy the company's shares with the company's own money through an investment vehicle controlled by Kaleil Isaza Tuzman. Stephen Maiden was sentenced in February 2015 to seven years in prison.[22] In July 2016 Omar Amanat was arrested as part of the criminal case but has not yet been formally charged.[23] Kaleil Isaza Tuzman is presently in prison in Colombia, but his extradition to the U.S. has been sought.[24]

Customers

KIT digital's clients include Airbus, the Associated Press,[25] AT&T, BBC, BSkyB, Disney-ABC, Google, Hewlett-Packard, Mediaset, MTV, News Corp, RSC MediaGroup, Sky Deutschland, Sky Italia, Telecom Argentina,[26] O2, Universal Studios, Verizon, Vodafone, and Volkswagen.

Technology

The KIT Video Platform,[27] is the company's cloud-based video asset management system that enables media & entertainment, network operator, and non-media enterprise clients to produce, manage, and deliver live and on-demand, socially enabled video experiences from any source to any screen.

The KIT Video Platform is available in two editions: KIT Cloud and KIT Cosmos.[28] KIT Cloud is a cloud-based, turnkey platform for multiscreen video publishing and monetization, designed for enterprise and media & entertainment organizations seeking an intuitive, turnkey system to manage their videos. KIT Cosmos is an on-premises or managed private cloud solution for advanced, broadcast-grade multiscreen broadband TV deployments.

Both editions of the KIT Video Platform are supported by the Platform Operations Manager, KIT digital's proprietary operational support system that delivers broadcast-grade quality of service and reduces the cost, risk, and complexity of deploying advanced IP video solutions. Operations Manager combines integrated ITIL service management, security, and quality assurance and is designed to increase functionality and scalability while minimizing operational and maintenance costs.

The Connected Device Framework, a comprehensive software development kit, extends the reach of the KIT Video Platform and enables video providers to deliver content from any source to any connected device. A key Element of the connected device framework is the App Studio, which enables non-technical users to author, manage and distribute highly custom native Flash and HTML5 media players, Facebook Apps, and native iOS and Android apps for smartphones and tablets.

Executive Management

See also

References

  1. ↑ "KIT digital riding the online video wave". 2009-11-23.
  2. ↑ "KIT digital bolsters focus on threescreen video for 2009". 2009-02-27.
  3. ↑ "Roo Group: Kaleil Tuzman Named Chairman And CEO", PaidContent
  4. ↑ "ROO Group Rebrands Itself As KIT digital".
  5. ↑ "KIT digital Acquires Telco/IPTV Services Provider Visual Connection" "KIT digital Acquires Telco/IPTV Services Provider Visual Connection" Check |url= value (help). 2008-10-07.
  6. ↑ "KIT digital Acquires Swedish Mobile TV Firm Kamera" "KIT digital Acquires Swedish Mobile TV Firm Kamera" Check |url= value (help). 2008-05-21.
  7. ↑ "KIT digital Acquires CMS Vendor Morpheum". 2008-09-05.
  8. ↑ "KIT digital Acquires the Assets of Broadband TV Provider Narrowstep"
  9. ↑ "KIT digital To Retire The Feedroom And Nunet, Projects 2009 Revenue Of $46M". 2009-12-05.
  10. ↑ "KIT digital Buys 2 Rivals For $20.9M In Cash, Stock".
  11. ↑ "The Feedroom Acquired by KIT digital for Mere 10 Million in Stock ; After $61 Million Funding". 2009-10-05.
  12. ↑ "KIT digital Buys Rival Multicast For Approx. $18 Million".
  13. ↑ "KIT digital buys U.S. Multicast for $18 mln". Reuters. March 15, 2010.
  14. 1 2 3 http://techcrunch.com/2011/01/31/exclusive-kit-digital-acquires-kickapps-kewego-and-kyte-for-77-2-million/
  15. ↑ http://techcrunch.com/2011/03/16/kit-digital-buys-polymedia-for-34-4-million-teases-big-upcoming-acquisition/
  16. ↑ http://techcrunch.com/2011/04/11/kit-digital-acquires-ip-video-management-and-delivery-company-ioko-for-91-4m-in-cash-and-stock/
  17. ↑ "KIT digital, Inc. Announces Restatement of Prior Period Financial Statements and Postponement of Third Quarter 2012 Results". 2012-11-21.
  18. ↑ "KIT digital, Inc. Announces Receipt of Notice From NASDAQ". 2012-12-10.
  19. ↑ "KIT digital to Change Auditors and Announces Delisting From NASDAQ". 2012-12-18.
  20. ↑ "KIT digital Files for Bankruptcy". 2013-04-26.
  21. ↑ "KIT digital's Chairman Resigns"
  22. ↑ "Two Men Sentenced to Seven Years in Prison for Defrauding Investors in Separate Multi-Million-Dollar Investment Fraud Schemes". FBI. Retrieved 14 July 2016.
  23. ↑ "Omar Amanat Arrested and Charged as Kit Digital Case Widens". Bloomberg. Retrieved 14 July 2016.
  24. ↑ "The Man Who Went From Harvard to Goldman to Colombian Jail". Bloomberg. Retrieved 14 July 2016.
  25. ↑ "KIT digital new IP video deal Associated Press". 2009-10-06.
  26. ↑ "kitd.com".
  27. ↑
  28. ↑

External links

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