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Finncap seems now to be buying (independently) huge amounts of shares suddenly at a much higher price than previously.
What reason is there for that?
Tricky_D, I was hoping someone would point out to STT1 that News corp haven't actually got rid of Unruly but swapped their investment into TRMR...presumably because they think they have the management to run the business better. Also installed Rebecca Brooks in a management role, which surely means News corp want TRMR to succeed.
I don't think stt1 fully understands that News Corp International now has a stake in Tremor and will pay towards the integration costs of Unruly.
Tremor has gained Unruly and, importantly, with access to News Corp's huge marketplace, the deal will hand Tremor the exclusive right to sell outstream video on more than 50 News Corp titles in the UK, US, and Australia.
This is a bigger deal than stt1 can appreciate or wishes to see succeed and the twisting to suit a negative agenda is therefore entirely predictable.
Tricky
"Stt1 begs to differ with Tremor's deal and suggests that it is too expensive"
You do like to twist what I've actually said to suit your agenda.
lol
I noticed you missed out that Unruly generated a LOSS of $11m (£8.8m) in 2019 and that News International (NI) got rid of Unruly at a fraction of the price they bought them for. Suggests they were happy to get rid of it at a loss.
Read the company newsflow. Read what is actually posted.
Riosurfer
"And the idea that ad tech sales are tanking"
Where do I say ad tech sales are tanking? I said ad prices are falling.
Crucial difference between the two.
Publishers are also pulling ad inventory hoping to support ad prices.
https://digiday.com/media/publishers-pull-ad-inventory-from-programmatic-markets-to-protect-ad-prices/
Bald_Eagle,
"Stt1, so by your own asmission you are talking rubbish....£30m over 3 years is £10 per year. "
Not at all. Where do I state that they need to spend £30m this year?
Their revenues were £260m for last year, which includes contribution from rthm operations which were closed. These will no longer contribute revenue nor cash for this year.
£10m spend would equate to around 4% of their last year's revenue.
Unruly made a ebitda loss of £8m in 2019, which I think will result in Trmr reporting a loss for this year.
Did Trmr ever mention that they have closed Perk.com?
Agree. My view too Bald Eagle. I read it as £10 million per year of ad spending (net?) through News Corp.
And the idea that ad tech sales are tanking...? Sorry, but it's things like Outdoors that have tanked the most. Look at SFOR's resurgence of late. People are living on line. Plenty of scope for good quality ad tech companies to use the pandemic to strengthen their positions. Gaming a e-commerce are particular growth standouts.
Tremor has clearly calculated great benefits in the cost savings and synergies from the Unruly acquisition. News Corp is receiving 6.91% of Tremor International stock, subject to an 18-month lock-up period, along with a total minimum revenue guarantee for News Corp of GBP £30m for the partnership.
This represents a good opportunity to scale up without starting from scratch, with all the extra costs involved.
Stt1 begs to differ with Tremor's deal and suggests that it is too expensive, especially in light of the latest virus threat and the typical and well-known late-payment of inventory.
The better-managed companies in the ad tech industry are used to dealing with late payments and since the current virus situation may eventually be recoverable it would seem unfair or even malicious to proclaim doom and gloom at this stage.
"The guaranteed £30m will need to be paid, regardless of whether there's a recession on or not. Regardless of whether there are inventory payment issues or not.
The £30m represents 1/2 the cash they stated they had as of 31st Dec."
==========================
Stt1, so by your own asmission you are talking rubbish....£30m over 3 years is £10 per year. And it is 'ad spend' whatever that is....I'm not sure that equates to a £10m liability against their cash reserves. I took it to mean a guarantee that TRMR would put £10m/year of advertising through News Corp....which could be something quite easy to achieve in the normal run of business....although a recession may make things harder, but it's the same for most businesses in a recession.
Scorpion
"The £30m to Unruly is over 5 years but I guess that doesn’t suit the troll’s agenda."
Where does it say the £30m is over 5 years? According to Tremor, it's over 3 years!! FACT!
We're already in June, so 5 months have already gone and we're heading into H2 from next month.
I think we're at the start of a recession, Covid19 is going to be around for long while still, inventory payments are a growing problem, ad prices are falling, so this year will be a very challenging time for ad tech companies.
From Tremor website (says 3 years!!):
" Under the terms of the Transaction, Tremor International has committed to an ad spend of £30 million with News Corp over a three-year period as part of this agreement. "
https://www.tremorinternational.com/wp-content/uploads/2020/01/TRMR-Acquisition-of-Unruly-060120.pdf
Great not having to read the trolls crap.
I hate having to post. Grrrrr. The £30m to Unruly is over 5 years but I guess that doesn’t suit the troll’s agenda.
bald-eagle,
Shares held in treasury can be sold or transferred at anytime.
jr
Bald_Eagle
"And your point is?!?"
The guaranteed £30m will need to be paid, regardless of whether there's a recession on or not. Regardless of whether there are inventory payment issues or not.
The £30m represents 1/2 the cash they stated they had as of 31st Dec.
And that's on top of the bad debt provision of $22.3m.
Hi CurlyKev, nothing to stop them doing that. They can also use them for purchases in the future, offering shares instead of cash. And if they are very flush with cash, they can cancel them meaning less shares in issue.
Lots of options with the shares.
"As I said they can re-issue shares and thus acquire cash"
============================
Wouldn't that be classed as a rights issue? If so it would require the market be informed and again some people can be jittery about such things.
"As part of their acquisition of Unruly, they guaranteed minimum £30m of revenues to News International....5 months have already gone since the acquisition."
==========================
And your point is?!?
My brother once did some electrical work for a guy who owned a pub....instead of being paid in cash he got paid in beer. My brother was happy because he liked a drink and the barkeeper was also happy because the actual cost for the work to him was a fraction of the cost of the beer. I wonder if that's relevant!?
As part of their acquisition of Unruly, they guaranteed minimum £30m of revenues to News International.
5 months have already gone since the acquisition.
https://unruly.co/news/article/2020/01/05/tremor-international-acquires-news-corps-unruly/
Hi Guys,
As I said they can re-issue shares and thus acquire cash. They do not buy or sell direcly in the market that is why they have a broker and done independently but to agreed conditions.
The key here is if they give the cash away as in a divi, it will have left the company bs and their control.
Just holding cash (beyond immediate needs/plan) is a bad idea as it says (in corp fin terms) you can't think of anything better to do! This again is not good.
jr
Presumably a company selling its own shares would have to inform the market/investors. It may not look so good....unless for a specific purpose e.g. acquisition.
Can a company buy back their shares, hold them in treasury until the price rises, then sell them back into the market thereby increasing their cash reserves. Regards.