Shadow files for Chapter 11 bankruptcy, as they plan to restructure and look for a new investor
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Shadow files for Chapter 11 bankruptcy, as they plan to restructure and look for a new investor


Initially announced on Shadow's International Twitch Channel, it looks like Shadow will be filing for Chapter 11 bankruptcy in the United States, and its equivalent in France.

But fret not; that does not mean that your Shadow will be shutting down soon. It essentially means that Shadow is looking for a new owner.

In the announcement post on Shadow.Tech, they are stating it as a "new era" for Shadow. At the beginning of the blog post, Shadow talks about their vision and the founding of Shadow.

"Together, five years ago, we founded Shadow with the crazy ambition to replace all computers in the world with a more efficient, more accessible and more sustainable technological model. Together, we developed the best cloud PC for all, which pools maximum computing power with minimum latency. Together, we freed the computer from its physical constraints and made the product a smashing success, carried by a global community that embarked with us in this collective exploration."

And smashing success it was. Shadow has grown significantly over the last few years. And it has only accelerated since Cloud Gaming was brought to a broader audience because companies like Amazon, Google, Microsoft, and NVIDIA got into the market.

"Over the past five years, thousands of users, two-thirds of whom are based outside of France, have been convinced by subscribing to our service. Thousands more are waiting their turn, as demand continues to increase despite lengthening delays."

A small company, like Blade, can easily fall victim to its success. For Shadow, more people wanted a cloud computer, and they needed to keep spending money on new hardware. But with needing to purchase and rent more equipment, the cost was adding up quickly.

In the Twitch stream, Luc Hancock (Community Manager) and Stephane Heliot (Co-Founder of Shadow) discuss the hardships that Shadow has endured and that they have been dealing with financial troubles for quite some time.

Shadow hopes that filing for chapter 11 and restructuring their debt while also gaining a new investor/owner will help excel Shadow forward into the future.

"This new stage requires a fresh new start. We will undergo a reorganization in order to free ourselves from the debt holding us back to continue the development of our bleeding-edge technology. This investment process goes through the inevitable stage of collective proceedings, in France and in the United States, which will give us the best chance of achieving the dreams and ambitions we set out to accomplish since day one."

The blog post goes on to cover some frequently asked questions. In a nutshell, here are some statements that should cover what was mentioned in the post.

  • Current Shadow Boost/Ultra/Infinite subscriptions will continue to function as usual.
  • Pre-Orders are maintained for future Boost/Ultra/Infinite plans. You are free to cancel at any time if you want.
  • Expansions/Deployments are currently put on hold until Shadow finds a new investor
  • More information will be given out once Shadow is further along in the bankruptcy process.

My Thoughts

Many of you know that I am a huge fan of Shadow. I use it as my daily driver and have a Shadow Infinite subscription. My thoughts on this announcement? It is too early to tell.

In my opinion, it ultimately comes down to who ends up buying Shadow out of bankruptcy. Once we find out who that will be, I will be releasing a post about my thoughts on Shadow's futures. As of right now, I have nothing much to add; other than that I am not too surprised by this news.

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