Guvera CEO resigns after failed IPO

Troubled streaming service Guvera has confirmed with TMN that CEO Darren Herft has tendered his resignation. He has been replaced by founder Claes Loberg as interim CEO.

Guvera told TMN both Loberg and Herft remain on the Board of Directors.

Darren Herft

Herft’s resignation follows weeks of speculation regarding the platform’s future. Guvera’s grim financial situation was laid bare in June when the company failed to list on the Australian Securities Exchange (ASX). Since then, around 40 jobs have been cut from its local operation along with two subsidiaries, Guv Services and Guvera Australia, being placed into administration.

Herft, who is also the founder of private equity firm AMMA, reportedly delivered his resignation over a week ago before it was made public.

The failure to secure the IPO thwarted the company’s efforts to receive public funding that was reported to raise an estimated AU$100 million. This effectively removed Guvera’s point of parity, forcing the organisation to deliver a paid subscription service to customers in place of a consumer favoured free business model.

Guvera replaced its Play+ freemium product with a new service, Play, as well as adding an ad-free subscription model, Platinum. The result was disastrous for the company with many users losing playlists and being forced to pay to recover their music.

Loberg’s appointment as interim CEO restores hope for the company in the midst of a crisis. In an interview with TMN earlier this month, Loberg said he has refocused the business through the implementation of a restructured branded entertainment model.

“We’re a platform for brands. We’re not a music streaming subscription business – we’re a different business model,” he told TMN. “We’ve realised that ourselves, and are changing our focus completely.

“We aim to exploit our patents by becoming a new way for audiences to find free entertainment, without being disrupted with ads, and ultimately generating the revenues needed to support the 95% of people that want and expect ’free’.

Guvera has also restructured its market strategy under Loberg, exiting several major territories including North America, Mexico, Russia, Vietnam and the Philippines in a bid to focus on key larger markets such as Indonesia, Saudi Arabia, United Arab Emirates, Australia and its largest market, India, where it claims 7 million subscribers.

WatchHerft’s interview with ABC News last month where hediscusses the ASX blocking: