Hm, curiouser and curiouser. Platinum Studios Announces It Is in Negotiations to Acquire WOWIO, LLC. Notice this is not an announcement that Platinum is BUYING Wowio, just an announcement that they are talking about doing it. Given the state of Platinum’s cash flow these days (as shown by the SEC filings) their acquiring any business is surprising. PR in the link, but this is our favorite line:

Final deal terms between the parties have not been reached but the companies hope a transaction can be concluded early in the third quarter this year.

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33 COMMENTS

  1. So does this mean the Wowio site is going to be down during the interim?

    Not sure I like the idea of a Platinum run Wowio – Platinum hasn’t exactly made themselves a favorite among the creators lately, have they?

  2. I’ve had my Split Lip webcomic on Wowio for a little over a quarter. It hasn’t necessarily set the world afire, but it’s been earning me and my artists a decent royalty over that period. Hearing a few weeks ago that Wowio would be going international had me excited (new, bigger audience!), but now hearing that Platinum may be the buyer scuttles that enthusiasm pretty well.

  4. Very interesting. We’ve also been putting our books on Wowio, and are pretty concerned with Platinum buying them. Since Wowio is a pretty decent sized distribution point, wouldn’t this equate to someone like Marvel buying Diamond? Or to use the software world, Microsoft buying Best Buy or Circuit City? This doesn’t smell right at all. Since Platinum’s a public company I wonder if there’s a potential for regulatory issues in this. Also I’d be concerned about this statement, “Final deal terms between the parties have not been reached but the companies hope a transaction can be concluded early in the third quarter this year”. Does that possibly mean that Wowio could be closed much longer than the rumored mid July? Because even if they open back up with much fanfare, they’re bleeding internet users because of the closure.

    And internet folks are a fickle bunch.

  5. This doesn’t bode well for creators who were doing well with Wowio. Platinum can barely pay it’s creators now, and by the looks of it, can barely update their own silly looking websites.

  6. As a publisher with books on WOWIO, I would like to thank The Beat and the rest of the blogs for keeping us up to date on the direction of the deal.

    I would expect that the new contracts will be examined with fervor and that the site will hemmorage publishers.

    After their recent public statements, I am left wondering what Platinum is using for money.

    Bill

  7. As another creator with books on Wowio, I’m very interested in this turn of events as well. What strikes me about all this is that IF Wowio were simply “retooling” to “go global”, as they’ve stated, then they did NOT need to go offline in the interim. Maybe a day or two, but certainly not a month. So if they’re desperate enough to court buyers as shaky as Platinum, they must be really hurting for money. So that makes the likelihood of unpaid royalties coming through seem kinda remote.

  8. Platinum having a Wowio-like service makes sense. They don’t publish enough print books to make money from them. A Wowio model, with books supported by ad revenue would be some income.

    I wouldn’t put a book on Wowio if Platinum buys it. BLEH.

  9. I thought for sure this was going to be IDW/IDT when I first heard the rumors that Wowio was up for sale. This is very interesting. I wonder if it’s an all-stock deal? If Platinum is hurting for cash, that would be one way to put something other than cash on the table.

  10. I’m hoping that us content providers learn something sooner than later on this whole thing. There are so many questions that are up in the air with this, especially for all of us that are familiar with Platinum’s general business model.

  11. I too was happy to learn about WOWIO as I’d been doing great with comics and cartoons on the web for the past 12 years. I was just finishing negotiations with WOWIO when they announced a new upgrade. Success comes from website traffic and WOWIO was informed by me I could easily send several million hits to their site a month. So as soon as they assured me they could handle that much traffic and payout I was set. I’ve worked with Platinum Studios too. I’ve known good ol’ Scott Rosenberg for many years and he’d just optioned one of my comic books for film developement again a few years ago. WOWIO’s platform is what makes it work. No matter who owns it, if they change it one iota it will crash in on them and another company will take it’s place. We’ll have to wait and see the new direction WOWIO is going in and make the best of it.

  15. Hey, Bill, Given they haven’t paid many of us in six months, I suspect they’re using THAT money.

  17. As a side issue, it says a lot that so many people react in horror at the thought of Platinum getting involved in anything like it’s the kiss of death. I suspect the reaction would have been the same even before the current nonpayment/creator’s rights issues.

    This is major trouble from a PR standpoint, and I don’t see Platinum making any attempts to untarnish its image. It might already be too late.

  19. Rich Johnston has more info on the potential sale:

    LOL interesting to see Wowio is paying Platinum to buy them. (At least that’s sure how it reads to me.)

  20. Yeah…
    Wowio paying Platinum 7 figures to BUY their company?
    That’s just insane.

    I know Wowio has financial troubles…and Platinum has financial troubles.

    So how does this benefit the publishers who need reassurances they’re going to get their payments?

    I’ve generated about $40,000 from them in the last year with no advertising. Just fans downloading for fun.

    I’ve really held off on doing any real push because Mike S. Miller gets 20% of the money as kickbacks and he’s…well….the devil.

    This just isn’t looking good…and with no word from anyone from Wowio…it’s tough to get a bead on things.

  21. I have had my books up on Wowio for 4 going on 5 months and haven’t been paid yet. When are you supposed to be paid again??

  24. Man oh man. We (Big Head Press) had just signed the preliminary agreement with Wowio a couple of weeks ago. Haven’t proceeded with any particular books yet. We’ll just have to wait and see how this shakes out.

  25. Why dont you just wait and see what happens. Since most of you are scared and crying like little babies, pull your books if you think it is going to be bad. The DJ Coffman story has got everyone nervous, but this stuff has been going on with businesses (and not just Platinum) for years. We dont know the whole story, only what he said and that is based only on his word. And we know how good someones word is, especially on the internet.” I have a bridge for sale, in SF, really”. Any buyers? The bottom line, read your contracts and dont sign your artwork away for quick money. Work hard and maybe you will get noticed.
    Wowio could come out far better than it was. Blaming Platinum, because your scared of what could happen, is just nervious nellies responding to the news. Call them with your questions if your so inclined.

  29. The problem with people saying “this (companies lying, cheating, and stealing) has been going on in the industry for years” is…
    Yes it has.

    But that’s what’s so great about the internet. We can now AVOID those companies because we can find out BEFORE we sign deals with them.

    If no one SAYS anything. They’re being NEGLIGENT.

    If Platinum has financial issues. If Wowio has financial issues. The right thing to do is make this public.

    This is not a rumor mill. People aren’t gossiping. This is people’s lives we’re talking about.

    I appreciate everyone who stands up and lets the rest of us know who’s paying on time. Who’s not. Who’s a thief and a liar. Who’s honest.

    We have all of this information at our disposal. We’re able to communicate with other creators instantly. We should use it to our advantage.

  30. I agree with Scott Christian Sava. He’s proven himself a super professional. I’ve been in comics and mainstream illustration for 30 years and have seen every form of publishing plus and minus you can name and then some.

    The internet has been a freedom to me as I can publish what I want when I want to and make good money at it for over decade now. Don’t have to deal with neurotic or annoying bad tempered publishers and editors and the rip off factor at a minimum.

    Someone doesn’t want to publish your book you can put it online or publish it yourself. The options have never been greater because it only takes one email to get your work seen by millions whereas before in the old boys club you had to hope or pay a bribe or something.

    The internet is making multi-millionaires out of enterprising talented people and that’s good. We need more of it. If talent teams up we can help one another in ways unheard of before.

    Any company or resource that helps is a plus. It’s good to be patient and observant. That keeps the crooks and exploiters on the run and gives law enforcement the extra tools they need to go after evil doers.

  31. do they know that their studio corporation is being used in a counterfeit check ring here in Texas??? Happened to me and the FBI is involved now.

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