FAB Universal

FAB Universal was a United States-based company that combined digital-entertainment distribution in China with podcast hosting, publishing, and speech-processing software. The company emerged in 2012 from the acquisition of Digital Entertainment International Limited by Wizzard Software Corporation. After the transaction, Wizzard adopted the FAB Universal name and changed its stock symbol to FU. The resulting business brought together several otherwise distinct activities: FAB-branded digital-media kiosks and retail locations in China, the Liberated Syndication podcast platform in the United States, and Wizzard's speech-related software operations. The FAB business originated in China as a network of self-service kiosks and stores. Introduced in 2008, the kiosks enabled customers to download music, films, and television episodes to portable devices while advertising played on the machines. The network was reported to have approximately 12,500 kiosks across China. Digital Entertainment International was organized in Hong Kong as a subsidiary of Universal Entertainment Group Limited, a British Virgin Islands company. Its Chinese operating structure included Beijing Dingtai Guanqun Culture Company Limited and related entities, including Beijing FAB Culture Media Company Limited and Beijing FAB Digital Entertainment Products Company Limited. The retail operation also included stores in Beijing, including outlets in Joy City and the SoShow shopping district. The American side of the business was inherited primarily from Wizzard Software. Wizzard had been established in the mid-1990s to commercialize speech-recognition and text-to-speech technology licensed from AT&T and IBM. It later expanded through acquisitions and corporate transactions. Among the acquired businesses was Liberated Syndication, commonly known as Libsyn, a podcast-hosting and distribution service founded in Pittsburgh in 2004. Libsyn served podcast publishers and developed into one of the company's most recognizable operating divisions. Wizzard also acquired speech and medical-communication businesses, although its planned healthcare applications did not develop into a lasting core operation. Wizzard first announced an agreement to acquire FAB in 2011 and agreed to definitive terms in April 2012. The transaction closed in September 2012, producing FAB Universal Corporation. Wizzard's speech-processing activities were subsequently separated in branding terms as Wizzard Speech Software. These activities included AT&T Natural Voices, Wizzard Wavefile Factory for Microsoft Windows, and text-to-speech conversion services. The combined organization retained Christopher J. Spencer as chief executive, while Zhang Hongcheng became chairman and Bingbin Zhong became vice president of finance. Laurie Sims was reported as leading the Libsyn division in 2013. FAB Universal operated across a difficult mix of markets and business models. Its Chinese operations depended on physical distribution infrastructure, retail sites, advertising-supported kiosks, and consumer demand for digital media. Its American activities depended more heavily on subscription or service revenue from podcast hosting and specialized software. The company reported a workforce of roughly 24 people in Pittsburgh and approximately 192 in China in 2013. Jim Rogers joined the board in June 2013. The company also experienced significant public-market volatility. In September 2013, unusually heavy trading caused the share price to more than double before falling by roughly half within several weeks. FAB Universal attributed the situation in part to the effect of shares becoming available as lock-up periods associated with the 2012 merger expired, and issued a statement discussing dilution. FAB Universal ultimately ceased operations in 2017. The former businesses and brands should therefore be understood as components of a discontinued corporate structure rather than as an active unified brand.

FAB Universal was the result of a corporate combination rather than a company founded around a single original product. Its principal predecessor, Wizzard Software Corporation, was founded in late 1995 and incorporated in Delaware in February 1996. Wizzard initially pursued speech-recognition applications using technology licensed from AT&T and IBM. Christopher J. Spencer served as chief executive, while Armen Geronian was a co-founder and chief technical officer. Their earlier work included software for the ChinaWire money-transfer service. Wizzard operated from Pittsburgh and developed the Interactive Voice Assistant. Wizzard entered public markets and continued to broaden its activities during the 2000s. Its shares moved to the American Stock Exchange in February 2008 under the symbol WZE. The company explored podcasting after receiving requests to turn written material into spoken audio. It acquired Switchpod.com in July 2006 and Blastpodcast.com in September of that year. In October 2006, Wizzard agreed to acquire Webmayhem Incorporated, which operated Liberated Syndication, or Libsyn, for approximately $15 million in stock. Founded in Pittsburgh in 2004 by University of Pittsburgh students David J. Chekan, Matthew T. Hoopes, David Mansueto, and Martin Mulligan, Libsyn provided podcast hosting and distribution services. Its customers included prominent podcast publishers such as National Public Radio and Grammar Girl. Wizzard also pursued healthcare and medical-communication applications. It acquired Speech Systems Incorporated in 2001 and MedivoxRx Technologies in 2004. MedivoxRx had developed Rex, a talking prescription bottle intended to provide spoken medication instructions. In 2005, Wizzard agreed to acquire Interim Healthcare of Wyoming for approximately $1.2 million in cash and stock, with the intention of applying speech-recognition technology to nursing and office workflows. The healthcare strategy did not mature as planned. The medical business was eventually separated from Wizzard as Future Healthcare of America, effective October 1, 2012. The other major predecessor was Digital Entertainment International Limited. Organized in Hong Kong as a subsidiary of Universal Entertainment Group Limited, it operated FAB-branded stores and self-service kiosks in China. The FAB concept was introduced in 2008. Its kiosks allowed customers to download music, movies, and television episodes to portable devices while advertisements played. The network was reported to include roughly 12,500 kiosks across China. The Chinese business was organized through Beijing Dingtai Guanqun Culture Company Limited and associated entities, including Beijing FAB Culture Media Company Limited and Beijing FAB Digital Entertainment Products Company Limited. Retail locations included two stores in the Joy City shopping mall and a store in Beijing's SoShow shopping district, which opened in October 2012. Wizzard announced plans to acquire FAB in 2011 and agreed to acquisition terms on April 5, 2012. The transaction closed in September 2012. Wizzard then renamed itself FAB Universal Corporation and changed its stock symbol from Wizzard's former symbol to FU, effective October 9, 2012. The combination joined a Chinese digital-media distribution network with an American podcast service and speech-software business. In late 2012, the speech-processing operations were branded Wizzard Speech Software. Its offerings included AT&T Natural Voices, Wizzard Wavefile Factory for Windows, and services that converted text to speech. The combined company retained Spencer as chief executive. Zhang Hongcheng became chairman of the board and Bingbin Zhong became vice president of finance. Laurie Sims led the Libsyn division in 2013, and investor Jim Rogers joined the board in June of that year. A contemporary account described approximately 24 employees in Pittsburgh and 192 in China. The business therefore remained operationally divided between Chinese retail and kiosk infrastructure and United States-based software and podcast services. FAB Universal's public-market history was marked by volatility. In late September 2013, trading volume rose unusually, the share price more than doubled, and it subsequently fell by approximately half within several weeks. The company issued a clarification concerning dilution and the release of shares as lock-up periods connected with the 2012 merger expired. FAB Universal ultimately ceased operations in 2017, ending the combined corporate structure. The available record does not establish a continuing successor operating under the FAB Universal name.

• 2017

  Operations cease

  [1]FAB Universalen.wikipedia.org

  FAB Universal ceased operations.

• 2013

  Jim Rogers joins the board

  [1]FAB Universalen.wikipedia.org

  Investor Jim Rogers joined FAB Universal's board of directors in June.

• 2012

  FAB acquisition closes and company is renamed

  [1]FAB Universalen.wikipedia.org

  The acquisition closed in September, creating FAB Universal Corporation; the stock symbol changed to FU in October.

• 2012

  Healthcare business is spun out

  [1]FAB Universalen.wikipedia.org

  Wizzard's healthcare activities were separated as Future Healthcare of America, effective October 1.

• 2011

  Wizzard announces planned FAB acquisition

  [1]FAB Universalen.wikipedia.org

  Wizzard announced plans to acquire Digital Entertainment International and its FAB operations.

• 2008

  FAB kiosk brand is created

  [1]FAB Universalen.wikipedia.org

  The FAB brand was introduced for Chinese self-service kiosks that distributed digital music and video content.

• 2006

  Wizzard expands into podcasting

  [1]FAB Universalen.wikipedia.org

  Wizzard acquired Switchpod.com, Blastpodcast.com, and agreed to acquire Liberated Syndication, expanding from speech technology into podcast services.

• 2004

  Libsyn is founded

  [1]FAB Universalen.wikipedia.org

  Webmayhem Incorporated, operating as Liberated Syndication, was founded in Pittsburgh and later became a major Wizzard asset.

• 2001

  Speech Systems is acquired

  [1]FAB Universalen.wikipedia.org

  Wizzard acquired Florida-registered Speech Systems Incorporated.

• 1995

  Wizzard Software is founded

  [1]FAB Universalen.wikipedia.org

  Wizzard Software was founded in late 1995 to pursue speech-recognition software licensed from AT&T and IBM.

A cross-border digital-media and speech-technology company combining advertising-supported entertainment kiosks in China with podcast infrastructure and text-to-speech software.

• Digital media distribution · 2008

  FAB digital-entertainment kiosks

  Self-service kiosks deployed in China under the FAB brand. They enabled consumers to download music, films, and television episodes to portable devices, with advertising displayed during the transaction or playback experience. The network was reported to have approximately 12,500 kiosks.

• Digital entertainment retail

  FAB retail stores

  Physical retail locations supporting the FAB digital-entertainment proposition in China. Reported locations included two stores in the Joy City shopping mall and another in Beijing's SoShow shopping district.

• Podcast hosting and distribution · 2004

  Liberated Syndication (Libsyn)

  A podcast-hosting and distribution service founded in Pittsburgh in 2004 and acquired by Wizzard. Libsyn provided infrastructure for podcast publishers and was operated as a distinct division within the combined company.

• Text-to-speech software

  AT&T Natural Voices

  A speech-synthesis offering marketed by the Wizzard Speech Software division after the FAB transaction. It formed part of the company's continuing text-to-speech and speech-processing activities.

• Speech-processing software

  Wizzard Wavefile Factory

  Microsoft Windows software associated with Wizzard's speech-technology business. It was used in the company's broader portfolio of tools and services for producing speech audio from text.

• 2012

  Complete Digital Entertainment International acquisitionM&A

  Background

  The acquisition was intended to combine Wizzard's United States-based podcast and speech operations with FAB's China-focused digital-entertainment distribution network.

  Action taken

  The companies completed the transaction in September, renamed the resulting company FAB Universal Corporation, and changed the ticker to FU in October.

  Aftermath

  FAB Universal operated with separate Chinese and American divisions, including FAB kiosks, Libsyn, and Wizzard Speech Software.

  Source

• 2012

  Separate healthcare activitiesStrategy

  Background

  Wizzard's intended healthcare speech-recognition applications had not developed into the expected business.

  Action taken

  The Interim Healthcare medical business was spun out to shareholders as Future Healthcare of America, effective October 1.

  Aftermath

  FAB Universal's continuing activities centered more clearly on digital entertainment, podcasting, and speech software.

  Source

• 2012

  Rebrand speech-technology divisionStrategy

  Background

  The post-merger company retained Wizzard's speech-processing capabilities alongside the FAB digital-media business.

  Action taken

  The speech-processing software activities were branded Wizzard Speech Software in late 2012.

  Aftermath

  The division marketed AT&T Natural Voices, Wizzard Wavefile Factory, and text-to-speech conversion services.

  Source

• 2011

  Pursue acquisition of FABM&A

  Background

  Wizzard sought to add Digital Entertainment International's Chinese kiosk and retail business to its existing podcast and speech-technology activities.

  Action taken

  Wizzard announced plans to acquire FAB and later negotiated definitive transaction terms.

  Aftermath

  The transaction closed in September 2012 and resulted in the FAB Universal name and FU trading symbol.

  Source

1. 1FAB Universalen.wikipedia.org