DIGITAL MEDIA

Domenic Carosa: Destra founder

Online movie subscription company Quickflix is poised to be the first Destra asset on the chopping block as the appointed corporate advisory team, Lexicon Partners, conduct their extensive review of Destra’s operations.

Lexicon Partners principal and freshly appointed executive chairman at Destra, David Gordon revealed to Digital Media that he viewed Destra’s 20% investment in Quickflix as non –core to the business.

“Destra would be looking to expand its businesses based on owning and controlling the business that are in its group. Quickflix is a 20% shareholding and while that is a substantial stake it doesn’t give us a degree of influence that meets our objectives moving forward,” he said.

WIN TV has a 14% stake in Quickflix but is not believed to be a natural buyer of the asset. It is understood that Fairfax Digital was looking at the asset but lost interest in pursuing an IPTV-styled acquisition following the failure of its JV with Anytime. Quickflix reported a 22% increase in subscribers for the March quarter resulting in a total of 28,913 users with revenue receipts up 14% to $1.68 million for the period.

Gordon was reticent to discuss suggestions of the stripping off of any other Destra assets prior to the completion of the review but said of Quickflix that “if someone came to us with an offer that we thought was attractive we would certainly consider a sale.”

Sources close to Destra claim that there is an internal deadline of June to get the new strategy, and board in place with assets such as Brand New Media and Destra Music already receiving strong interest from potential buyers. Companies such as Sound Alliance have been mooted as potential acquirers of the music arm.

While Gordon confirmed that he had received “a lot of telephone calls” and that Lexicon was conducting the review “as quickly as possible” he would not confirm which assets were up for grabs. “There has been absolutely no decision made about selling them and I would be surprised if we sold either of them.”

“We are certainly looking at what assts will continue being core to our strategy and which are not. But no decision has been taken as the work has not been completed yet.”

Former Channel 9 COO Ian Audsley recently joined Lexicon partners and is spearheading the Destra review.

While areas of non- core activity are being focused on he added that the group was also “absolutely looking at areas of acquisition.” “We have some very clear ideas about where we want to move the business and we will announce that once the review is complete. We have significant plans for the business and we enjoy the support of Prime as our major shareholder, we value that relationship very highly,” he said.

Meanwhile Destra founder Domenic Carosa left Sydney for a 40 day yoga sabbatical on Thursday and told DM that he had “every confidence in the board and the management team. And I am still holding on to my shares.”

Carosa’s new venture Dominet Digital, which will focus on digital innovation and investment, has already made its first significant strategic investment in Melbourne based Mailinglists.com.au. Carosa has become chairman of the start-up which is an online self service system targeting SME’s that require marketing lists. The automated service allows users access lists regional or nationally across a range of market segments for digital marketing campaigns at 3 cents a record.

The investment is set to be the first of many “my interest is in investing in young entrepreneurs with online business. Watch this space” Carosa said.

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