ExtortionLetterInfo Forums

ELI Forums => Getty Images Letter Forum => Topic started by: SoylentGreen on March 30, 2012, 10:34:48 AM

Title: Expiry of Arius3D's Agreement to Acquire Masterfile
Post by: SoylentGreen on March 30, 2012, 10:34:48 AM

Expiry of Arius3D's Agreement to Acquire Masterfile

http://www.marketwire.com/press-release/expiry-of-arius3ds-agreement-to-acquire-masterfile-tsx-venture-lzr-1638082.htm

I think that this would have been a money loser.
Fewer people are paying infringement claims.  If they took many people to court, it would destroy their reputation eventually.

S.G.

Title: Re: Expiry of Arius3D's Agreement to Acquire Masterfile
Post by: Matthew Chan on March 30, 2012, 01:10:28 PM

I am sure this is a setback for the CEO who has stated he would have to get out of the business at some point. He can't cash out like he intended. He will have to continue whipping his extortion department to continue threatening people out of money.

Also, we had never heard of an Arius3D settlement demand letter before and still haven't heard of one. I am wondering if the Aruis3D was concerned about taking on Masterfile's reputation for extorting people.

In the press release, it mentions Masterfile's strong financials but the secret is out that the major stock photo companies use the extortion letter scheme to create new revenues to offset the fact that the stock photo business is becoming a commodity business and actually going down the tank.

Getting in to the stock photo business is like trying to fight your way into the newspaper business. Titanic, anyone?

It's possible that Arius3D was interested in Masterfile's library of photos but not willing to pay to an inflated value due to the artificial inflation of including Masterfile's extortion / collection revenues.  Masterfile may count it as revenues but NOT from traditional stock sales. That might have been problematic for Arius3D who does not appear to run an extortion scheme as far as we know.

There are very few people who want to buy a business whose primary line of revenues and profits comes from threatening to sue people. It makes for a shitty business model not to mention an ongoing PR nightmare.

Everything I just stated is speculation on my part.

Title: Re: Expiry of Arius3D's Agreement to Acquire Masterfile
Post by: SoylentGreen on March 30, 2012, 05:04:46 PM

I really thought that Arius3d saw value in pursuing copyright infringements, and wanted to get into the game and step it up a notch.
That's the only valid reason that I could see that Arius would want MF's portfolio of stock images.
I don't think that MF's "distribution network" would have added much value to Arius3d's business.

This is also speculation on my part...

S.G.