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

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Overview

  • Media
  • Interim Management

Engagement Team