Overstock’s security token subsidiary tZERO has announced a partnership with media company BLOQ FLIX to tokenize film financing.
The company announced the plans on Thursday, amid a period of reorganization following tZERO’s quarterly loss of $10 million and Overstock CEO Patrick Byrne’s abrupt departure.
Through the partnership, referred to as “Blockbuster meets blockchain” in the press release, the firms will establish a new film financing route for television, internet, and studio projects. Using tZERO’s tokenization protocol, BLOQ FLIX will enable qualified investors to participate in the funding process.
“We are thrilled to partner with the BLOQ FLIX team to bring a secure and innovative investment alternative to film financing. Our continued goal is to tokenize and trade assets that can benefit from blockchain technology, and digitizing film financing fits this model nicely,” said tZERO CEO Saum Noursalehi, in a statement.
According to BLOQ FLIX CEO Brandon Hogan, blockchain will streamline the funding process by providing capital directly to studios and producers.
The brokerage JumpStart Securities will serve as placement agent for these offerings.
Hogan and BLOQ FlIX co-founder Jonathan Helmuth have collectively raised over $100 million in production funds throughout their careers, according to the press release.
In July, tZERO announced it will tokenize and raise up to $40 million in funding for Atari founder Nolan Bushnell’s biopic, with film production and financing company Vision Tree.
tZERO photo via Flickr