UPDATE: We have created a special page to keep everyone updated on the chapter 11 process.
VidAngel is still up and running. And generating millions in revenue.
Chapter 11 reorganization can be bad news. But in VidAngel’s case, it’s good news for VidAngel and filtering.
First, chapter 11 is simply a reorganization and part of our legal and business strategy. Per federal law, chapter 11 reorganization automatically pauses our lawsuit with Disney and the other plaintiffs in California. This strategy also allows us to continue our new lawsuit in Utah, where we are seeking a legal determination that our new filtering system is legal.
Second, VidAngel is not going away. To the contrary, our new VidAngel system for Netflix, HBO, and Amazon is up and running. We have millions of dollars in the bank, and are now generating millions in revenue. Our original series, Dry Bar Comedy, is exploding and has had over 16 million minutes viewed in the last 7 days. If you are a customer, you will be able to continue to use VidAngel to filter movies in your home using your Netflix, Amazon, and HBO subscriptions.
Third, this filing should give us time to take care of our customers and investors. Thousands of our customers invested $10 million to help VidAngel win the legal fight. We want to ensure that VidAngel continues to grow like gangbusters so that the many families who took a chance on us get their investment back – hopefully with a good return.
Remember, our new VidAngel system is growing rapidly. Our goal here is to reorganize the business around our new streaming model, which means pausing the lawsuit long enough so that, even IF VidAngel eventually loses the lawsuit on our old system, we have enough revenue from our new system to pay any damages to Disney. That way, VidAngel can survive and reap a return for the many thousands of customers who invested in us.
Finally, we want to emphasize that this is Chapter 11 reorganization, NOT Chapter 7 bankruptcy. Chapter 7 is for companies going out of business. Chapter 11 is to protect companies that just need more time and flexibility to pay their obligations. Many companies, including Marvel, General Motors, and Delta Airlines have filed Chapter 11 reorganization and emerged as thriving, healthy companies. That is VidAngel’s plan, and we just took the first step.
To recap, VidAngel is:
- Pausing the California lawsuit
- Up, running, and making millions
- Exploding (over 16 million minutes viewed in last 7 days)
- Working to make a return for our investors
- Taking the same path as Marvel and Delta
We want to thank our customers and investors for all their support. We will keep you updated as we continue this legal battle – if necessary, all the way to the Supreme Court.
Neal Harmon, Co-founder and CEO