Neverblue To Be Sold at Auction
Today's Editor's Picks
We regret to inform you that there are some bad news coming from team Neverblue…
Velo, the parent company of Neverblue and Neverblue Email (AKMG), is moving forward with the sale of its assets at a bankruptcy auction, as first reported by DowJones.com.
Yes, that means bankruptcy.
Neverblue is/was one of the leaders among performance-based online marketing companies focused on lead generation and acquisition, or like we like to call it – one of the leading affiliate networks online.
Not surprisingly, however, when you go to Neverblue.com you’ll see not a single mention of the whole situation.
And the situation is indeed a serious one. The whole idea of the auction is to sell Neverblue to pay Velo’s debts. Quite simply, the whole network will go to the highest bidder.
Interested bidders can submit their offers until July 27. The auction will then take place on July 31 (this year).
Why Does This Affect Affiliates?
The whole problem for affiliates is that, formally, the new owner buys the company only for its assets, not debts. Of course, they can pay off those debts, but you never know how this is going to play out exactly.
One of the main dangers of such a situation is that affiliates and publishers could not be paid.
Obviously, the company could no longer function if it refused to pay their affiliates and publishers, so we let’s not be all that pessimistic. Not getting paid is the absolute worst case scenario.
Neverblue decided to address this issue by releasing the following statement:
“[…] We believe that both our lenders and any potential acquirer would be highly committed to ensuring that the Neverblue companies can fulfill their potential and continue to offer the same great service clients have come to expect.
Our business is performing well and we continue to operate business as usual without interruption. We value our relationship with you and look forward to continuing to work with you for many years to come.”
Should you do anything else than wait to see how this plays out in a couple of weeks? There are only two options now. You can either pause all your Neverblue campaigns and try to get your money out as soon as possible. Or you can proceed as usual if you believe that affiliates and publishers won’t be affected by this situation. What’s your take on this?