Business man, Tommy Jacobson criticizes the streaming company in public.
Last year Magine raised more than $35 million in two different venture capital rounds. The company, which streams different tv-networks channels online, has also faced some backlashes.
The first bump in the road appeared when Swedish TV-network TV4 decided to stop working with Magine.
The company has also changed its business model since TV4 left the platform.
One person who got in early is Tommy Jacobsson. According to the last financial statement from his investment company, Varenne, he owns 2 percent of Magine worth $1.5 million.
He is now raising his voice against the company’s communication policy with its investors.
“It really makes me wonder. I can’t get an answer from them, that’s what I’m criticizing. I’m very disappointed as an investor”, he says, and adds that he has “mentally written off” the company.
Do you have a reason to lower the valuation of your shares?
“That’s what I don’t know, and that is quite annoying. They are raising more capital all the time so it seems like they believe in themselves. Maybe it’s going great, but it doesn’t feel good to invest in a company when your not getting any information. A lot the executives have been replaced, and maybe the new guys don’t think that its necessary to talk to minor investors”, he says.
“I’m hoping that things are going great, of course. The value of my investment has definitely increased if the company is going as good as the venture capital rounds suggest, but it annoys me that I don’t know how the company is doing”, he adds.
After TV4 left the platform, Magine shifted its focus to Germany. There are also expansion plans for Asia, South America and the Middle East. When the company pivoted, it also raised more than $12 million, from the oil tycoon Alejandro Bulgheroni, among others.
In october last year, the company raised an additional $27 million from the pre-existing owners.
According to Tommy Jacobson, the major investors are now in total control of Magine.
“There is one large owner who just does as he pleases. I would love to be invited to some sort of information conference or something like that to hear how it’s going”, he says.