BREAKING NEWS
We have been inundated with multiple reports that media server kingpin Kaleidescape has ceased operations as of the end of the day yesterday (Friday). Furthermore, all employees both internal and external, have reportedly been let go.
See more on this sudden – and to many – surprising news…
Saturday morning our various networks began heating up, telling us that Kaleidescape had ceased operations. Immediately, we began reaching out to multiple players trying to confirm these reports.
On an online forum for Kaleidescape owners, a post from “cinelife” on a thread titled “Kaleidescape Closed” said: “Yes, sorry to confirm the news, but K closed their doors today and laid off all workers. More to follow….. Jim.”
Owners’ Forum Appears to Have Details
Although cinelife’s bio on the forum seems to suggest they are a dealer for Kaleidescape, keep in mind we have no way to verify his or her identity – or the accuracy of the specific information in their post at this time.
However, shortly after the first post, cinelife added the following (click to enlarge), where “Jim” claimed reliable sources, though they were unidentified.
Yet later, in a longer more detailed follow-up post, cinelife added (again, click to enlarge) that they have “confirmed” the news after speaking with the “CEO”:
Again, please remember we have not yet, as of early afternoon on Saturday, confirmed cinelife’s information. However, we did reach out to several Kaleidescape executives, though none of our calls were returned prior to this posting.
Company Meeting for Terminations
We did however, reach Kaleidescape ” Product Evangelist” David Donald. Donald told us that he did not have much information on the situation, but in fact there was an all-staff meeting called on Friday that included all internal and external staff.
Those attending that meeting had no idea why the meeting was being called, although Donald told us that this was not uncommon. Apparently, Kaleidescape regularly holds these types of company-wide meetings on a regular basis.
‘I Am No Longer Employed’
Unfortunately, there was a technical glitch and Donald could not connect to the meeting. He found out later, in an individual telephone call with CEO Srinivassan that his employment was being terminated.
“The only thing I know right now, formally, is that I am no longer employed,” Donald told us succinctly. “And whatever reorg [reorganization] they’re going to pull or anything like that – unfortunately, I don’t have any eyes on. But all I can tell you is that I know for a fact that I don’t have a job.”
Strata-gee has often reported about management turmoil at Kaleidescape, which has changed vice president’s of sales regularly. In March 2015, we reported that company had hired three VPs of Sales within one twelve-month period. This all suggested to us that things were not going smoothly at the company.
Was This a Surprise?
So were these terminations a surprise?
“Well, I mean certainly sales haven’t been at the numbers that we wanted them to be,” Donald said. “But this, more or less, blindsided me…so I wasn’t quite prepared.”
Donald also could not confirm that all employees had been let go. He has heard from a few, he said, but he can’t formally represent that the entire company was let go. For that, he suggested, we’ll need to dig deeper with others.
Cinelife Reaches Out to Strata-gee
We were contacted directly by the individual who prefers we refer to him as cinelife and he confirmed his conversation with CEO Cheena Srinivassan last evening that the company is in fact ceasing all operations. Employees, he says, are told to come in on Monday to clear out their desks and pickup their final paychecks.
Cinelife talked extensively about what a shock this situation is, both professionally as a dealer, and personally as a user of Kaleidescape products. There is some hope, optimism really, that the company may be picked up by another owner and rise again from the ashes.
Hoping for a Buyer
At this point, this is all that we have been able to develop. There is no word of any bankruptcy filings, or whether there are, in fact, any companies interested in buying Kaleidescape.
But as one source told us – the popularity of streaming has just taken too many potential customers away from Kaleidescape.
See the Kaleidescape Owners Forum here: www.kscapeowners.com for more on what’s happening with Kaleidescape.
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