Video-sharing destination GoFish is now abandoning its purchase of Bolt, according to sources to Digital Music News.
The acquisition, first reported in February, involved a stock-for-stock transaction valued at $30 million. But the deal recently dissolved, apparently because of licensing concerns. As part of its acquisition, GoFish agreed to assume major label and publishing liabilities related to Bolt, though the requirements proved too cumbersome. The consolidated licensing approach complicated previous negotiations involving GoFish only, and ultimately untied the deal.
A formal announcement on the development is expected over the short term, according to one source close to the situation. In March, Bolt had actually finalized a multi-million dollar out-of-court settlement with Universal Music Group, though deals remain unfinished with other majors. The dropped acquisition is disappointing, especially considering the combined video firepower that the merged entity would carry. But moving forward, GoFish is expected to continue its original licensing deals, a somewhat simpler endeavor.