Report: Prior to breach, no one wanted to purchase Ashley Madison

Ashley Madison couldn't find a suitor.

Published Mon, Aug 31 2015 4:30 AM CDT   |   Updated Tue, Nov 3 2020 12:04 PM CST

Avid Life Media was unable to find a willing suitor for Ashley Madison, and trying to generate new funds proved extremely difficult.

Report: Prior to breach, no one wanted to purchase Ashley Madison | TweakTown.com

Avid Life sent a letter to investors that it was interested in purchasing $10 million worth of shares, amid pressure to improve the company's liquidity. Any aspirations for an IPO would be crippled in a "doomsday scenario," according to bankers speaking to Reuters prior to the massive data dump.

"Over the last couple of years, we have not been successful in exploring various alternatives including a sale of the business and seeking debt from third parties," a letter from the board of directors confirmed.

As it turns out, it's a good thing that no one ended up purchasing Ashley Madison - the PR nightmare Avid Life Media is currently dealing with would have been another company's problem. Trying to sell the brand would be even harder now, as the breach has led Avid Life Media to generate international negative attention.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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