Case Study: Our Client Completes Video-on-Demand Acquisition Due Diligence with Sphere Partners

a client completes video-on-demand acquisition with Sphere Partners using retention agreements and restrictive IP sharing

The customer, a major reinsurance company, was considering acquiring a video-on-demand technology company and hired Sphere Partners for technical due diligence. The challenge was to assess the target's market potential, technical viability, and significant risks including a hard-to-parse monolithic code base, an eccentric founder with a lack of management structure, and cultural integration between teams in Hong Kong and Silicon Valley.

Sphere Partners conducted in-depth market and technical research to evaluate the risks. Their solution included a detailed evaluation of the intellectual property, ownership structure, and cultural fit. The acquisition was completed successfully based on Sphere Partners' recommendations, which featured lucrative retention agreements for the founder and development team and a restrictive IP-sharing agreement to mitigate the risks identified with the shared code base.