Mundo Media financial crisis. Here is everything we know
Mundo Media is first and foremost known in affiliate marketing for its mobile installs, such as various utilities, browsers, boosters, and antiviruses. 2015-2017 witnessed the company’s greatest success. The situation in the market has been changing over the years, however, and it’s likely that the company failed to keep up with new market trends.
Mundo Media used to have more than 100 employees in its offices throughout the world, but even such a large organization has proved not to be immune to financial difficulties. Rumors that Mundo Media is going through tough times first appeared in February, and in a matter of a month, the entire Toronto affiliate community was aware that the company was experiencing problems. In late February, Mundo Media’s social accounts were abandoned, and the company stopped making any announcements, which was rather unusual, as they used to attend each and every major affiliate conference.
On April 10,What The Affpublished news that Mundo Media had asked its affiliates to stop driving traffic to any of their offers, as they were not able to pay for it. No official statement has been released by the company after that. Lots of versions have sprung up: owners escaping with all the company’s money, bankruptcy or just the inability to settle bank debts.
As we got to know later, the company had lots of creditors. Our source, who wished to remain anonymous, clarified what is going on with Mundo Media and how the situation is likely to unfold.
Mundo Media has gone bankrupt. This is true, but only to a certain extent. The company has faced financial issues and failed to settle its debts. Instead of announcing the company bankrupt, the bank has decided to opt for receivership. This means that since April 8 Mundo Media has been primarily controlled by the bank. The process is supervised by Ernst & Young, one of the 4 leading audit firms in the world.
What does it mean for webmasters/affiliates and all those who have been working with Mundo Media? Under the terms of receivership, priority is given to the bank, which means that it can administer all the funds to pay out the debts.
Mundo Media currently has two options:
Option 1. Settle all the bank debts and close the company.
Option 2. If somebody purchases Mundo Media, it will mean that the company is bought out by the third party with all its resources, property and so on. The bank is interested in the second option, as it is easier and faster. In this case, the debt will be completely settled, and the company will change hands.
Now we cannot say anything about the future of MundoMedia with 100% certainty. However, it’s clear that the company is not doing well.
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