Quokka.com Sells Large Stake in College Athletic Business
Terms of the agreement were not disclosed, but sources indicated that the deal requires zUniversity to hire more than 20 Quokka employees.
The San Francisco-based company has fallen on hard times recently, laying off 217 workers -- 60 percent of its staff -- just this month. That move came on the heels of layoffs last year, when more than 90 workers were let go.
Yesterday's announcement also detailed plans for a long-term agreement between the two companies to promote and develop a technology licensing agreement.
Sources said the deal allows Quokka to maintain control of some of its more valuable assets, such as the rights to produce official NCAA men's and women's basketball Final Four portals and collegiate baseball's World Series.
Analysts said the deal seems to indicate that Quokka officials are now intent on concentrating on big, Web-friendly sports events -- such as the NCAA tourneys -- while generating revenue by selling off or licensing the company's technology.