HONG KONG: Multimedia travel and learning company Alive Networks is
looking for a new investor amid mounting speculation that the Hong Kong
start-up is facing funding difficulties.
At media's press time, the company had yet to find a new investor, which
it had hoped to locate before its May 11 deadline to obtain fresh
funds.
It is understood that Alive has formulated a statement for staff, saying
it remained confident of its future. "In the current economic
environment, many businesses - both local and international - are
experiencing difficult times. Alive Networks is no exception, but we are
all working hard to meet these challenges successfully."
It also said it is "inappropriate" for the privately-held company to
comment further on what it called "internal business matters".
Established by hongkongdotcom's co-founder Ian Henry, Alive's business
plan is built around using television, print, personal handheld devices
and the internet to sell travel-related products. For example, a viewer
watching its television service goes online to book a customised
offer.
Alive's business premise has, however, come under increasing
scrutiny.
Observers have pointed out that start-ups are for the internet, while
the television business is for media companies that are expanding into
the medium or have the cash and strengths already acquired from another
successful business.
Since its launch at last November's CASBAA conference, Alive has inked
distribution deals in Indonesia, the Philippines and Taiwan. Last month,
it signed a deal with Taiwan's Videoland.
Even with a new investor, Alive faces an uphill climb. With established
pay TV players still looking to make a profit out of the sector or the
Asian market, Alive's distribution deals are unlikely on their own to
have generated sufficient cash flow or significant new revenue streams.
