Feb. 17, 2012
/PRNewswire-Asia/ -- GigaMedia Limited (NASDAQ: GIGM) ("GigaMedia") today announced that new management is seeking to sell certain of the company's assets in the first half of 2012. The planned disposals are intended to free up approximately
for investment in new strategic growth initiatives, in line with GigaMedia's turnaround plans.
The company's turnaround plans, driven by CEO
, are based on an explicit decision-making framework with clear objectives: effectively managing cash, maintaining the company's listing on NASDAQ, and executing a new strategic growth plan.
Part of efforts to better manage cash and increase focus, new Giga's disposal and asset optimization program targets investments made in certain game studios in
, as well as underperforming assets. Multiple publicly-listed game studios in GigaMedia's investment portfolio have grown in value. While past results are not a guarantee of future performance of these investments, based on current market values of GigaMedia's shareholdings management believes it has a reasonable expectation of generating cash proceeds of approximately
exclusively from sales of its interests in these publicly-listed game studios.
Additional details on new management's turnaround plans will be provided going forward, including on GigaMedia's fourth-quarter conference call, anticipated in the second half of March.
GigaMedia Limited (
registration number: 199905474H) is a major provider of online entertainment software and services. Through its subsidiaries, GigaMedia develops and operates a suite of online games in
, covering all regions of
. More information on GigaMedia can be obtained from
The statements included above and elsewhere in this press release that are not historical in nature are
within the meaning of the
provisions of the Private Securities Litigation Reform Act of 1995. GigaMedia cautions readers that forward-looking statements are based on the company
s current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to certain factors that could cause actual results to vary can be found in GigaMedia
s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission in June 201
For further information contact:
, Investor Relations DirectorTel: +886-2-2656-8016
SOURCE GigaMedia Limited