Bidstack shares have had a disastrous start to the new year after the in-game advertising technology company revealed a souring relationship with their partner, Azerion.
A deal with Azerion struck in 2021 was supposed to deliver $30m in sales from Bidstack’s in-game advertising inventory over a 2-year period.
However, Bidstack have today announced Azerion have withheld payments Bidstack feel are due to them, and Azerion are seeking to terminate the agreement. Concerns about the health of the relationship arose in October when Bidstack said they received a non-disclosed email from Azerion but there was ‘no litigation with Azerion’.
Today, Bidstack said they are now pursuing legal action to recover sums they feel are owed to them as part of the agreement.
Bidstack had called the ‘landmark’ commercial Azerion deal ‘ground-breaking’ in their 2021 full year results and just eight months later the agreement lays in tatters, along with the Bidstack share price.
Bidstack shares were down 28% to 1.98p at the time of writing and had a market cap of just £25m – considerably less than the cash it has raised from investors to fund the development of their in-game advertising platform.
The company conducted their latest raise in October, securing £10m.
Bidstack have failed to capitalise on their first mover advantages in the in-game advertising space with multiple advertising agencies and platforms now getting in on the action.
Bidstack recorded just £2m revenue in the first half of 2022.