New details on Digeo's finances show a total deficit of $554M |
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New details on Digeo's finances show a total deficit of $554M
Earlier today, we reported on how 2009 has been a pretty rough year for Seattle software mogul Paul Allen. And now we're getting insights for the first time on just how poorly one of his recent investments fared.
Kirkland-based Digeo -- a developer of digital video recorders that Allen backed over the past decade -- compiled an accumulated deficit over the years of $554 million. That disclosure was made today in a SEC filing by Arris Group, which bought some of the assets of the company in October for just $20 million.
According to an audit performed by Deloitte & Touche, Digeo recorded a net loss of $37 million on revenue of $5 million last year.
And the company continued to lose money in the first half of this year, recording a net loss of $14.7 million on revenue of $3.2 million.
An accumulated deficit of more than half a billion dollars is certainly significant over a 10 year period. But it pales in comparison to the billions of dollars that Allen lost on Charter Communications, which exited Chapter 11 bankruptcy this week.
Digeo -- at least the remaining assets that weren't gobbled up by Arris -- entered Chapter 11 bankruptcy protection last month.
About John Cook
John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
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