The termination of content hosting services agreement between Yeah1 and YouTube took effect on March 31, the company said in a recent statement sent to State Securities Commission of Vietnam.
This means Yeah1 will not have the multi-channel network business on YouTube.
Yeah1 said that it was ready for the termination and had adjusted its resources needed to focus on developing content and its own channels operated on YouTube.
All Yeah1's partners on the multi-channel network sector have been notified, given detail instructions and supported on channel conversion process. The group stated that other businesses and strategic cooperation are maintained and developed.
Besides doing multi-channel business on YouTube through cooperation with partners' channels or third parties', Yeah1 is now developing its own channels and content as well as continues to produce social media content. It still considers YouTube as an important distribution channel.
In addition to YouTube-related businesses, Yeah1 Group owns and operates nationwide coverage - four television channels, produce and distribute films. It also is a TV advertising agency and digital advertising publisher.
Yeah1's board of management currently reviews and adjusts its business plan for 2019 which will be officially announced and consulted at the annual general meeting of shareholders held on May 8, 2019.
In early March, YouTube claimed that a multi-channel network SPRINGme had violated its policies in some of channel management activities and then, terminated content hosting services agreement with SPRINGme and other related networks, including Yeah1 Network and ScaleLab.
The decision devastates Yeah1's ambition to become the no one multi-channel network on YouTube. The group then decided to make divestment of 100 per cent stake in California-based ScaleLab.
YEG shares reduced in 13 consecutive sessions and only show signs of recovery recently, reaching VND102,000 per share.
Yeah1's board of director has approved the plan to buy treasury shares with a maximum number of 3,127,990 shares, equivalent to 9.999 per cent of issued shares.
Yeah1 said that it has submitted files to the State Securities Commission and is waiting the official approval and guidelines.