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Tremor (then Taptica) stated they were very happy to acquire the expertise developed by R1.
Even without scrutinising the books they were very impressed.
It's there in black and white.
Stevie,
"The game changer here was when Taptica bought Rhythmone. Everything before that transaction is irrelevant."
rthm merger a Game Changer!!! - I don't agree, quite the opposite. Taptica and rthm(now trmr) NEEDED each other because their individual businesses were suffering. Rthm had been running a full stack for years. They made losses for years.
Taptica(now trmr) BoD clearly didn't do a full DD (they only got access to the full books after the merger was complete).
Here's the evidence:
Look at the timeline of events - with the bullish comments, followed by falls due to events:
Before rthm/TAP merger completed - speculation of $700m combined revenues!!!:
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https://www.thedrum.com/news/2019/01/30/rhythmone-and-taptica-plot-merger-compete-with-google
Apr 2019: After the agreed merger, the problems/challenges previously mentioned became apparent:
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"Following completion of the acquisition of RhythmOne, the Company has been informed that, on a standalone basis, RhythmOne’s trading for the year to 31 March 2019 was below market expectations.
Whilst undertaking due diligence in respect of Taptica’s merger with RhythmOne,the Taptica Directors took a conservative approach in relation to RhythmOne’s trading to 31 March 2019"
"The Board’s outlook for Taptica remains as set out in its full year audited results released on 19 March 2019."
https://www.tremorinternational.com/wp-content/uploads/2019/04/Appointment-of-CEO-RhythmOne-Trading-Update-and-Commencement-of-Share-Buyback-Programme-2-April-2019.pdf
From the company broker- free to register:
"Taptica’s management has only just received access to a very complex and disparate
organisation in RhythmOne"
"We caveat that these are early-stage forecasts ahead of Taptica’s management getting a detailed look into the RhythmOne books and business over the next months"
Their fy2019 forecasts were revenues $495m, adj ebitda $67.4m
https://www.finncap.com/research-portal?#/portal/finncap/research/8_10220
Sept 2019 - 6 months later, Profit warning, as expected!
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" This coupled with the weakness in the Performance division year on year means that the Board believe the Company will be marginally behind full year expectations on profitability for 2019. "
https://www.investegate.co.uk/tremor-international--trmr-/rns/interim-results/201909240700083776N/
Fy2019 - fy2019 was substantially below all expectations:
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revenue: $325m
adj ebitda: $60.4m
https://www.tremorinternational.com/wp-content/uploads/2020/05/Tremor_2019_AR_WEB_SPREADS.pdf
Stt should take heed of the Livermore quote "The market is never wrong,often our opinions are" and move on. Hes a bad loser, The game changer here was when Taptica bought Rhythmone. Everything before that transaction is irrelevant.