SBJ/September 1 - 7, 2003/This Weeks Issue
PVI sold to major creditors
Published September 1, 2003
Virtual advertising pioneer Princeton Video Image Inc. has completed a sale of all its assets, creating a new company that will operate under the name PVI.
Cablevision and Presencia Media, which were the company's main creditors, are now the principal shareholders of PVI Virtual Media Services LLC. PVI had been operating under Chapter 11 bankruptcy protection.
The newly organized company will be led by former PVI chief operating officer James Green, who has been promoted to CEO.
Former co-presidents David Sitt and Roberto Sonabend will be co-chairmen and operate the company's Mexican subsidiary.
Green said the asset sale will allow PVI to continue on a business-as-usual basis, but it will now be cash-flow positive because it has eliminated the costs associated with being a publicly traded company.
It will maintain headquarters in New York City and New Jersey, with offices in Mexico, Hong Kong and Toronto. The company has 80 full-time employees.
Green said the primary source of revenue for PVI will continue to be selling advertising directly, and then placing those ads on network broadcasts electronically. He said PVI also is looking to grow its broadcast enhancement business, where it collects a fee for providing technological features such as the first-down line on CBS.
"While those production deals are not very profitable," Green said, "they do get you in bed with the broadcasters, then we're able to leverage that to do advertising deals."
PVI's executive team under Green remains in place, including veteran vice president of new business development Sam McLeery and PVI Entertainment President Lon Rosen. McLeery is in charge of PVI's relationships with broadcasters and sports properties, while Rosen heads the division of the company that inserts images of products into television shows.