Digital Media and Gaming
The Situation
- $100MM+ private equity-owned digital media and gaming company that implemented applications for various social networks – primary focus was purchases of rights to classic video games, incorporating in-game ads and re-distributing the games; also operated an advertising network which purchased and sold advertising inventory to third parties
- Company transitioned to an interactive media and entertainment business in 2018 through acquisition of three key bolt-on additions; additions targeted multicultural millennials through direct media campaigns on their own web-based platform
- Change in the advertising and social media marketplaces resulted in significant declines in company revenue; management’s efforts to rebound were not enough to forestall insolvency and a loan default
Role(s)
- Interim Chief Financial Officer
- Interim Chief Restructuring Officer
The Work
- Actively managed hostile vendor negotiations
- Ran a robust sale process of company’s largest business division
- Created numerous lender deliverables
- Evaluated M&A opportunities
- Effectuated a successful Article 9 foreclosure to form a NewCo and subsequently led the filing of a Chapter 7 liquidation of the original company
The Results
- Stabilized operations and provided equity and lenders sufficient confidence to execute a formal resolution process
- Assisted the private-equity owners with evaluating and on-boarding a new President
- CR3’s operational assessment served as a roadmap for NewCo to ensure a successful transition towards a more profitable and financial stable company