Interactive media company Two Way Limited (ASX:TTV) has entered into a more favourable license agreement with UK sister company Two Way Media UK.
Under the new agreement, Two Way Limited will pay its sister $286,000, due by the end of January 2011. In return the company will be granted a perpetual license agreement with no further license fees payable.
The old deal had Two Way paying $500,000 per annum in license fees, an amount that was later reduced to $250,000.
“The cancellation of the license fees will drastically improve our cash flows after January 2011,” Two Way Limited CEO Ben Reichel said. “It will also dramatically improve our bottom line for the 2012 financial year onwards.”
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.