Ouya rumored to be looking for a quick sale to cover debt
updated 09:50 pm EDT, Tue April 28, 2015
by MacNN Staff
Alleged debt problems may prompt Ouya sale at auction in future
Ouya, the Kickstarter-funded Android game console, may be in significant financial trouble. The company is looking to sell itself at auction as soon as possible, according to an allegedly leaked memo reportedly sent to investors, with the sale prompted by the company's failure to restructure it's hefty debt, and potentially being used as a way to rectify itself financially.
According toFortune, Ouya secured venture debt from TriplePoint Capital, shortly after raising $15 million in funding in early 2013. While the amount borrowed is unknown, it is believed to be in excess of the $10 million the company raised just two months ago. The confidential email reportedly sent out by CEO Julie Uhrman to investors and advisors earlier this month apparently revealed the company tripped a debt covenant, a requirement related to the debt, with TriplePoint now calling that debt back in. The auction will apparently be carried out by investment bank Mesa Global, with no suggestion of a sale price thus far.
"Our focus now is trying to recover as much investor capital as possible," writes Uhrman in the alleged memo. "We believe we've built something real and valuable. I continue to read the tweets and emails of our fans who play Ouya every day, and our catalog is now over 1,000 apps and 40,000 developers. We have the largest library of Android content for the TV (still more than Amazon.)"
Ouya, Uhrman, and TriplePoint did not respond to comment requests by the report.