Pretty much any plans to make significant, proactive corporate structure changes that seemed perfectly feasible in the first half of 2008 became nigh impossible by the end of the year. RealNetworks Inc. [
RNWK]
acknowledged as much today, announcing that its plan to spin off its casual gaming division, first unveiled in May 2008, is off the table for now.
The digital entertainment company said it would take a $6 million charge to reflect fourth quarter layoffs in the gaming unit and to write off transaction-related costs associated with the spinoff plan. RealNetworks said it has "postponed work with outside advisors."
RealNetworks, which
had planned to separate the unit,
said that the uncertain times make continuing with the plan difficult.
"While Real still intends to create a separate games company, there is no visibility as to when conditions will support separation," the company said.
The news came as RealNetworks announced preliminary fourth quarter revenue of between $151 million and $153 million, which is in-line with what it forecast in October. It also said it would take charges of between $227 million and $249 million in the quarter. It will report fourth quarter earnings on Feb. 12.
RealNetworks shares declined 3.6%, to $2.94, in morning trading Tuesday. -
- Olaf de Senerpont DomisSee Feb. 3 press release from RealNetworksSee June 2008 post on RealNetworks from Corporate Dealmaker
Continue reading below
