Posted on another board...

Is it possible they were concerned about a judgment agains them, and spun it off to protect company assets?

Purely a charitable act?

New investors didn't want it as part of the package?

Unresolved issue that was interfering with the sale?

Portable IFE meets charitable causes By Mary Kirby on November 3, 2009 12:30 PM | Permalink | Comments (3) | TrackBacks (0) | ShareThis Portable in-flight entertainment

(IFE) specialist digEcor believes handhelds still have a long shelf life despite the proliferation of personal electronic devices (PEDs) among passengers. To wit, the firm is working with Chinese partner Lefeel Media Technology to bring to market new 7in and 10in portables, the L7 and L10 respectively, which are thin, sleek and highly durable (pictured).

The hardware is so strong that you can even toss a player on the ground without it breaking, according to digEcor. For more information on the L7 and L10, read the following brochure: Lefeel Brochure.pdf That portable IFE still has legs in today's PED-laden world must be good news to the Deseret Foundation, the Ensign Peak Foundation and the America Foundation. Why? Because all three public charities own all the stock in digEcor and "all the revenue from the digEcor line goes to charity", according to company president CEO Brent Wood. During a press briefing at the recent World Airline Entertainment Association (WAEA) conference and exhibition,

Wood revealed that the Deseret Foundation, which promotes healthcare in the greater Salt Lake City area, and the Ensign Peak Foundation, which preserves historical sites, each own a 48% shareholding in digEcor. The America Foundation owns the remaining 4%.

"We continue to operate the companies under their direction - their board of trustees," said Wood. The gifting of digEcor's ownership to charity came at a time when the firm was in a protracted legal dispute with former partner and rival e.Digital. That case finally saw some level of resolution when a Utah district court recently dismissed with prejudice all of digEcor's remaining claims against e.Digital, and ordered that it recover no damages or injunctive relief. So I asked digEcor if one had anything to do with the other. "No. DigEcor's non-profit ownership is completely unrelated to any lawsuit," says a digEcor spokesman. He points out that the Wood family, like many other members of the Church of Jesus Christ of Latter-day Saints, has a long history of philanthropy. Brent Wood is, for example, president of Clear Horizons Academy, a special school for autistic children.

Coyote

http://www.flightglobal.com/blogs/runway-girl/2009/11/portable-ife-meets-charitable.html