Wednesday, 14 October 2009

Joost UK enters liquidation

The U.K. arm of online video service Joost announced on Wednesday it has gone into liquidation.

"The company had failed to sustain a significant share of the Internet video industry and was unable to address this effectively through a re-positioning of its services," said Joost UK in a brief statement emailed to Total Telecom.

In what could be other signs of its protracted demise, the struggling P2P video firm announced in July it was retreating from the consumer market and would instead focus on providing white label solutions to enable media companies to publish their own Internet video content.

The reorganisation also saw the replacement of CEO Mike Volpi with Matt Zelesko, Joost's senior vice president of engineering.

Although Wednesday's announcement concerns one Joost subsidiary, the company launched by Skype founders Niklas Zennstrom and Janus Friis has recently become embroiled in a wider dispute with its ex-CEO.

In September Volpi was removed as chairman and became the subject to an internal investigation.

A week later it emerged that Joost, along with another Zennstrom and Friis company, Joltid, was suing him for breach of fiduciary duty by allegedly using confidential information to strike a deal with eBay to sell its 65% stake in Skype to a group of private investors.

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