Settlement Talks

Discussion in 'XenForo Discussions' started by AWS, Feb 15, 2013.

  1. AWS

    AWS Administrator

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    It looks like settlement talks are ongoing. They had 2 days, 2-13 and 2-14 with a total of 10 hours of talks already. They have more talks planned on 2-20. It looks like a settlement will be reached and soon.

    I don't know how this will go. I don't know who initiated the talks. I don't know what the outcome will be. My gut tells me that xenforo will not exist in it's current form after the settlement is reached. If I was a betting man I would bet that Kier and Mike turn over xenforo to IB in exchange they get a fair amount of money that will offset lawyer costs and time spent developing xenforo. I don't really see any other outcome.

    Me personally hopes that if IB does get control of xenforo that they allow Kier and Mike to continue running it and give IB a share of the profits. Let Kier and Mike run it the way they want with no interference from IB with the exception of taking a piece of the profit. I wouldn't have a problem with this. In fact it is probably the best outcome we can hope for. We'll get to continue using xenforo. Kier and Mike will still own it and IB will have no say in the development of it. We all know what w2ould happen if IB has control over xenforo development don't we?

    What your thoughts on this?
     
  2. Riess

    Riess Regular Member

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    Anything but withdrawal of IB's claims and refund of legal costs to xF will be extremly disappointing.

    And I would be suprised if K&M agreed to maintain xF under IB considering how they have quit after clash with IB's management.
     
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  3. GTB

    GTB Regular Member

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    I call FUD
     
  4. Riess

    Riess Regular Member

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    Then learn what FUD means.
     
  5. GTB

    GTB Regular Member

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    Fear, uncertainty and doubt
     
  6. HWS

    HWS Regular Member

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    I think neither Kier nor Mike would have fun working under IB's control. So, if IB gets control over the software, Kier and Mike would be gone (much as they are now, so no difference). Both are far away from software coding since more than 1 year now, so that wouldn't be a problem for them. Maybe Kier will continue under IB's watch, but Mike for sure wouldn't from my point of view.

    IB surely likes to get control over XenForo given their debacle with vBulletin. They recognize the value in that software (even KAM didn't recognize it, otherwise they would never have stopped development and participation)
    This is why I also assume that ownership over XF will change for a lot of money and settlement of all pending law cases.
     
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  7. GTB

    GTB Regular Member

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    Find it hard to imagine that one as well, not after everything that's gone on and both Kier and Mike leaving IB before off their own accord to do their own thing instead.
     
  8. AWS

    AWS Administrator

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    I'm not saying IB gets control. Maybe I worded it wrong. What I mean is Keir and Mike keep xenforo, but, IB gets a percentage of the sales. I think that is about the best that can be hoped for other then Keir and Mike winning outright..

    We will not know until it's done exactly what agreement they come to.
     
  9. GTB

    GTB Regular Member

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    If that happened, KAM would be under pressure to continue developing XenForo "tied to an agreement" with IB, whether they want to continue or not. But what if it's not selling enough to pay KAM a weekly wage, and with IB taking a cut out the profits also. XenForo is still small, would it even be able to sell enough right now to support something like that?

    Doing some maths for the hell of it. XenForo sells for $140, that's about £90 UK money. So to pay Kier alone a wage of £300 week (what he might want), they need to sell about 4 licences per week, that's 8 licences to pay both Kier and Mike a wage need to be sold weekly. If IB was taking a cut, they might have to shift 12-14 licences per week minimum. Do you think XenForo is currently selling between 10-14 new licences each week? Because License Renewals - doesn't factor into things much, because most are saying they won't renew until development restarts and another new release is made, plus XenForo user-base is too small yet. So they ain't getting much from that as extra backup money coming in on a regular bases. Selling 10-14 licences might not sound a lot each week, but when you're a small company that takes some doing when you have IPB and vBulletin after the same sales, and lets not forget the harm XenForo have done to their own sales credibility with nothing happening for 12 months.

    Thing is, it would still be taking money away from vBulletin sales lining KAM's pocket. And if XenForo then went on to become even more popular selling much more later at vBulletin's expense, it would be a bad decision made by IB really. They wouldn't be able to do anything about it either, as they would have agreed to only take a small percentage of cash out XF sales, so I'd be surprised if something like that happened...
     
  10. HWS

    HWS Regular Member

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    You see this right, Gaza.

    IMHO Mike doesn't want to continue development. Kier is also far away from development since more that a year.

    I doubt that we'll ever see a XenForo 1.2 under control of KAM.

    Since the settlement talks seems to be serious, the only outcome -if they'll really settle- will be something that gives IB control over XenForo in it's current state. From this point of view it makes even sense that they stopped development.

    KAM is allowed to release another software if they like to do so. KAM get some money reimbursed. IB gets full control over XenForo.

    This is one of the most likely outcomes.
     
  11. HWS

    HWS Regular Member

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    They've deleted the vB bashing thread at XenForo and ruled (who?) that they won't allow such threads any more.

    While it was the right thing to do (however, almost all mods commented in it and there were several such threads!), it makes me wonder if this decision has something to do with the settlement talks.

    It's now 3 days after the last known meeting and nothing has been announced. And no news are bad news, because a total win would have been announced in the minute they knew it.
     
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  12. crash1987

    crash1987 Regular Member

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    I like to think that some development work has gone on but KAM might have been advised not to release anymore work until everything is done with the courts.

    I also think that if Mike isn't going to be developing the software he will still be an owner very much like was John was for years.
     
  13. AWS

    AWS Administrator

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    I thought the exact same thing last night. They remove the vbulletin bashing thread, but, leave the IPB thread open and close the vanilla forum thread. Maybe an announcement comes soon about the settlement. It is kind of strange the way things happened with that thread. It's been open for a long time.
     
  14. Joeychgo

    Joeychgo Regular Member

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    I doubt we'll know the complete details of any settlement. These things are usually done with a confidentiality agreement. I also doubt it will be a complete win for either side.

    My guess is they have a settlement already and are drafting the agreements and ironing out the details.
     
  15. HWS

    HWS Regular Member

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    I also think there was a settlement. They clearly don't want to provide a stage for vb bashing any longer (which they did for more than a year now). And the "mods" for sure didn't decide that.
     
  16. AWS

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    We will never know the all the details. We will know some of it since they have to announce something. Probably going to get something like the vbgallery announcement that Photopost did after they settled with Brian.

    My guess is the settlement was reached during the talks on the 13TH and 14TH and the ironing out was done on the 20TH. It's all paperwork now, dotting the i's and crossing the t's. We should hear something soon.

    The scenarios I see:
    1. Kier, Ashley and Mike retain xenforo with a percentage of the proceeds going to IB and development restarts.
    2. Kier and Ashley retains xenforo same as above and Mike gets his shares bought out. Development on hold until Kier and Ashley hires another coder.
    3. IB gets a lump sum payment and relinquish all claims to xenforo. Development restarts if Mike is still on board otherwise on hold until a new coder is found.
    4. Kier, Ashley and Mike get lump sum payment for xenforo and IB gets control. IB agrees to support current users and closes down sales. There are other scenarios for this one, but, none would be good for customers.
    I just don't see any other scenario that fits. Maybe I'm off. I do doubt either party wins outright. N0 matter what anyone says or thinks you don't go into settlement talks if you think you can win. Another thing to consider is evidently there were some truth to the claims IB made. The reason I think this is because the judge would have thrown it out and not had them go to arbitration.
     
  17. GTB

    GTB Regular Member

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    Something is going on, you can only still guess what until word is posted "what exactly has happened". But you have to say, it's looking more and more likely something has been agreed with a settlement. There really should be something on PACER by now, even after the 13th and 14th dates, which lead to more talks on 20th - Pacer was still updated for them dates 2 days later.

    It's the weekend now, so you would have expected PACER to be updated at the latest on Friday 22nd, 2 days after talks before weekend comes and courts are closed until Monday. Only thing I can think, there was either an adjournment with the talks for the following day (or whenever), which lead to a delay in PACER not being updated. Or, things are now being kept confidential on purpose.

    Thing is as well. KAM are not coming out saying no agreement has been reached, that only helps fuel speculation further. And unfortunately, there are a few things happening quite timely recently. vB5 is installed at vB.com in-between 14th and 20th, they removed that vBulletin 5 thread and posted no more bashing of competitor products is allowed. Maybe something and nothing.. but you don't know?
     
  18. HWS

    HWS Regular Member

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    Everyone is waiting for PACER. But its updates are triggered by the lawyers. ;-)
    And KAM knows exactly what's going on. Their silence means: No favorable outcome for XF until now. This may also mean: No settlement.
     
  19. GTB

    GTB Regular Member

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    Well... the longer it goes on with Pacer not being updated for 20th meeting, the more it looks a settlement is being finalized and why nothing is getting listed on pacer. We can use that as an idea, because all along Pacer has been updated at some point soon afterwards (with each hearing). So should be no reason for it to continue same way, unless things are now being made confidential. That can only mean a settlement of some sort has happened.

    See if out gets listed on PACER this coming week, something should.
     
  20. GTB

    GTB Regular Member

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    If I'm right, all the mods had a say in that thread and left it running. So who suddenly removed it?
     

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