Reactrix confirms it is in receivership; looking for buyers
October 15, 2008 by Dave Haynes
This has been known for a bit, but not confirmed by the company … so we didn’t exclusively spread what was still a rumour. But it is now formally out there that Reactrix is in receivership.
In receivership, the Redwood City, Calif.-based company retained business consultants Sherwood Partners to “manage the restructuring process and find buyers for the company’s media and technology assets,” Mike Ribero, CEO of Reactrix said Wednesday (Oct. 15) in a prepared statement.
Ribero blamed a weak market for alternative out of home media and the current credit crisis, which made it difficult for the company to obtain debt or equity financing.
Since the company was founded in 2002, Reactrix has had a number of investors including Worldview Technology Partners, Mobius Venture Capital, Thomas Weisel Venture Partners, and Tim Koogle, the former chairman and CEO of Yahoo!
Sherwood has retained 13 of Reactrix’s key technology employees in the hopes of selling the technology. The company’s deals in malls and with National CineMedia will also remain operational “to help provide a potential acquirer with a smooth transition,” Ribero said.
Despite Reactrix’s financial situation, the company has drawn a number of top advertisers including Coca-Cola, Sony Pictures, Mars, Visa, New Line Cinema, and Subway, among others.
According to the Reactrix, Sherwood is currently in discussion with several potential buyers.
The interactive projection technology used by Reactrix is very interesting and generates a lot of buzz. But it is also inherently expensive to buy, set up and operate.
The thing that always worried me was that when I have seen it in public places, adults were whizzing right by the floor projections and the only people really engaging were under the age of 10.
That said, there’s potential there, and hopefully the core of the team and the IP they’ve built up attracts a new investor and energy.