Yesterday San Diego based DivX announced the shutdown of popular video site Stage6, to the surprise and dismay of the site"s 17.4 million happy monthly visitors.
There"s lots of speculation around why DivX is shutting the site down, ranging from piracy issues to the spiraling CDN costs of streaming all that HD content. At a meeting in late November the DivX board was asked to approve a spinoff and venture financing deal for Stage6. But at the last minute the board decided to cancel the spinoff and retain control of Stage6. According to multiple sources, a ridiculous battle of egos at the DivX board level caused most of the team to simply quit.
Stock in DivX hit an all time low today.