Monday, March 4, 2024
Monday, March 4, 2024
HomeBusinessByjus suspends the agreement with footballer Lionel Messi amid a liquidity crisis

Byjus suspends the agreement with footballer Lionel Messi amid a liquidity crisis


New Delhi: Edtech major Byju’s has reportedly suspended its three-year deal with football icon Lionel Messi as its global brand ambassador. The company hired Messi as a brand ambassador for its ‘Education for All’ social impact arm in 2022.

Facing a severe liquidity crisis, the company has reportedly suspended the deal and is “deliberating whether to terminate the contract prematurely or explore options to revive it.” Byju, however, paid Messi for the initial year of the deal. The Economic Times was the first to report on the new developments in the deal between Byju and Messi.

The company did not officially comment on the development. In November 2022, Byju’s announced Messi as the first global ambassador for its social impact brand, ‘Education for All’. Messi, a player for Paris Saint-Germain in the French Ligue 1 and captain of the Argentine national team, was to promote the cause of equitable education during his association with Byju’s. (Also Read: Paytm Stock Hits Circuit Low for Third Consecutive Day; Investors Continue to Bleed)

“Partnering with one of the world’s most popular athletes is in line with BYJU’S’ growing global footprint and its commitment to making education accessible, equitable and affordable for all,” the company said. Previously, Byju’s became the official sponsor of the 2022 FIFA World Cup in Qatar.

In November 2022, Byju’s announced Messi as the first global ambassador for its social impact brand, ‘Education for All’. “I chose to partner with Byju’s because their mission of making everyone fall in love with learning aligns perfectly with my values. High-quality education changes lives, and Byju’s has transformed the career paths of millions of students around the world. I hope to inspire young students to reach and remain at the top,” Messi had said in a statement.

Last week, the education technology company said investors do not have the right to vote on the CEO change, after statements emerged from a few select investors calling for an extraordinary general meeting to replace the group’s founder and CEO , Byju Raveendran. (Also Read: Explained: Paytm payments banking crisis and what it means for customers, why did it come under RBI’s lens?)

Think & Learn Private Limited, the parent company of Byju’s, said it will proceed with the proposed $200 million rights issue after receiving encouraging responses from multiple investors. In another letter to employees, the company accused some investors of “conspiring” against the company in these times of crisis.



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