Rediff.com is selling its US based India Abroad business to 8kmiles Media, MediaNama had learned from multiple, reliable sources. 8kmiles Media is a sister concern of cloud computing firm 8kmiles. On being contacted, Rediff Founder and CMD Ajit Balakrishnan declined to comment, saying that the company is currently in a quiet period, and hasn’t responded to a mail for a written comment sent three days ago. R.S. Ramani, CEO of 8kmiles confirmed the acquisition to MediaNama, but declined to comment further, and offered to connect us to Suresh Venkatachary, the founder of 8kmiles; we haven’t heard back from them, and will update about their plans once we do.
India Abroad is a New York based weekly newspaper, targeting the Indian American community in the US. It monetizes using advertising, subscription ($32 per year), classifieds and events, especially, the India Abroad Person of the Year awards. 8kmiles has a digital radio, magazine, and a business of syndicating Indian movies in the US.
- Q3 FY16: $0.48 million
- Q2 FY16: $0.42 million
- Q1 FY16: $0.47 million
- Q4 FY15: $0.45 million
- Q3 FY15: $0.61 million
- Q2 FY15: $0.48 million
- Q1 FY15: $0.70 million
- Q4 FY14: $0.48 million
- Q3 FY14: $0.75 million
Rediff has applied for delisting from NASDAQ, and is currently being traded on the “over the counter” marketplace, where, at the time of filing this report, it was trading at $0.165 per share, and with a market value of around $4.55 million (as of November 16, 2016).
Rediff announced the delisting process earlier this year, after it received a letter from NASDAQ, which said that for the previous 30 consecutive business days, the bid price for Rediff’s American Depository Shares (ADSs) closed below the minimum $1 per ADS requirement for continued listing on the NASDAQ Capital Market.
We don’t have recent financial data on Rediff, but the company had a few turbulent years prior to delisting: declining cash reserves with losses almost each quarter over 30 quarters, distraught investors.