Submitted by Bob Burton on
Medialink Worldwide, the largest producer of fake news products such as video news releases (VNRs) and audio news releases (ANRs), is teetering on the brink of collapse. In its latest annual report, the company reports that it had an operating loss of over $8.2 million in 2008 and "expects to incur operating losses in 2009 as revenues continue to decline in the current economic climate." The company states that it will continue cost-cutting measures and that is "is looking for "additional financing or investment from potentially interested third-party investors or buyers." However, it warns that unless it can raise additional funding it may not survive. O'Dwyer's PR Daily notes (sub req'd) that the company's external auditor, KPMG, stated that "these factors raise substantial doubt about the Company's ability to continue as a going concern.” Over the last year, the company's share price has collapsed from $1.21 to trade at around 13 cents.
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