BDE Unloads Auction Channel
Created 05/22/2001 - 23:00
Brilliant Digital Entertainment, Inc., a leading developer of 3D rich media content creation, distribution and ad serving technologies for the Internet, announced a cash sale for substantially all of the assets of The Auction Channel subsidiary to MetroChannels, a division of Rainbow Media Holding Inc., a leading cable programming company. Kevin Bermeister, president of Brilliant Digital, commented, "Brilliant Digital has previously stated its intent to divest of The Auction Channel subsidiary and we are pleased to announce the completion of the sale, during a very difficult time in the market. This is a very positive outcome as it substantially reduces the operating cash needs of the company. In addition, the sale of this non-core asset allows senior management, who have been engaged by these negotiations, to focus on our core animation and technology business, which is beginning to demonstrate promising results." Bermeister continued, "Resources previously deployed to develop The Auction Channel technologies have been diverted to support Brilliant Digital's animation technology, music and advertising business units. We are now focused and believe we are well positioned for improved success in our core business." As earlier reported by AWN, on April 3, 2001, Brilliant Digital Entertainment Inc., announced continued losses for the fourth quarter and fiscal year ended Dec 31, 2000. The result of this was an urgent focus on profitability leading to aggressive cost-cutting measures. The company recently launched the Gold version of their b3d Studio tool suite, which is used to create 3D animation for distribution on the Internet. They have previously produced 3D digitally animated interactive titles featuring popular characters and music artists that include Ja Rule, Ludacris, Superman, Xena, KISS and Ace Ventura.