As per AIG's quarterly report Blackboard has been put into run-off.
AIG paid $100 million for Hamilton USA, which got morphed into Blackboard - and who knows how much more AIG sunk into it afterwards.
https://whbl.com/news/articles/2020/may/04/aig-quarterly-profit-nosedives-as-covid-19-claims-loom/1014300/?refer-section=business
It is ironical about Blackboard being put into runoff, because while Blackboard was in development from the time BD was hired, he said in 2018/2019 he wanted AIG to be like Blackboard, though the company was expected to sell its first policy in December 2020. The person hired to lead Blackboard was previously appointed head of AIG Europe, and was laid off while preparing to move to NYC, BD and all his executives have been a disaster for AIG. AIG was a premium insurer and all the executives post Bob Benmosche, kept cutting expenses replacing experienced staff, with a lot newbies who new nothing about insurance or service, reduced the company unable to support their existing base. The insurance executives saw the writing on the wall and moved with AIG's clients to the competition.
AIG products were always sold at a premium because of the premium service it provided, but no longer. AIG is a company that is dying slowly with no hope of resurrection and as it goes down to being a shell of its former self, the management will continue to keep cutting expenses till AIG has no intrinsic value. It has no market leading products that anyone is clamoring to buy!!!
Did they really build anything? Maybe AIG didn't want to allow a proper due diligence that would expose the lack of true IP. What is the advantage of a $200 mil write-off vs a fire sale?
There was never any interest from AIG in allowing a sale to go through. If they really wanted to get full value, they wouldn't have announced the runoff to begin with - it put Blackboard in an impossible position to negotiate. Despite that obstacle, the executive team still managed to find a buyer who made a reasonable offer, only for AIG to refuse it. It's a shame, because they had incredible momentum, had just launched new products and states, and had at least one patent for their technology. Now AIG has thrown 150 talented people out of work, and halted what could have been a very successful company, for what amounts to change in the couch cushions. More short sighted and self-serving decisions from AIG. I wouldn't expect anything else from them.
wow, makes you wonder why aig bought a company that they knew would add no value?
oh wait, I know why. bd needed a new mansion in bermuda
the sales trajectory was far off expectations from the get go.
AIG has had them on a short leash since July 2019
Will AIG need to approve a sale? Recent report is that AIG wouldn't be initiating a sale, but blackboard leadership is out there soliciting investors.
I believe they did this so they can meet some of the savings they promised in their AIG 200 initiative for this year.
This must have been a shock. They were still adding states, opening service lines, and recruiting staff last week. I hope they find some investment capital. I liked what they were trying to do. Coming from the broker side it was starting to really show a lot of promise; convenient to use integrated experience and the book was written and in the clients hand immediately. Whenever I have something that makes my life just a little easier...Coronavirus!!!
I was told Blackboard is being put up for sale but if no buyers in 30 days, then it gets shutdown in 90 days...Employees were told no severance-nothing. The sad thing is as recently as last month, they were luring people away from other companies and now these people have nothing. The company is getting more heartless.
Someone will capitalize them. Even during Coronavirus wall street lives for data driven start ups. I bet they already have investors lined up. They’re probably lucky AIG didn’t just sell them off.
Just a sacrificial lamb to cover for AIGs CAT losses. Under other circumstances they would have continued to capitalize them. BB wrote more than 40mln last year. I wonder what will happen to all the business they wrote/are writing? Does anyone know if BB are accepting overtures from investors or if AIG is going to sell it off?
Wow. That was fast.
A Blackboard can be used for learning and erased easily.
What's run off mean? Is blackboard being sold?
Just last month they brought in new hires and today posted a new state expansion via LinkedIn. Any idea behind the cause for this sudden move? And what will happen to Attune?