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If rthm were doing so well then why sell out for such a deal?
Prove the model works before clouding the figures yet again...
I think the talks started around H1 TU and that may have been the reason behind the CFO resigning 'with immediate effect' in Sept. Bring in a new CFO to dress up the company to sell it..
Disappointing terms have caused the price drop, but this could be a turning point.
I've topped up @ 1.65
Hopefully price will rise if the offer terms improve, another party show interest, or as the integration works.
It say £130m under "market capitalisation"..
where you getting £147m from... it closed at that last night.
Market cap tap 115m market cap rthm 147m. It doesn't make sense to me.
As they are in takeover talks you'll get a lot of disclosures of smaller holdings, long or short. Some of them maybe interesting.
It might explain why the Shares on Loan decreased before the talks were announced.
Having looked over both company figures imo Tap is the better company and has better value. The market cap for the company does not reflect the value and has been greatly oversold. I think the 16 for 19 is fair value in terms of comparing the two companies.
It will be a very good deal if it goes through for the shareholders and I wouldn’t be surprised to see £4 in 12 months.
Unfortunately the deal is not done yet and the news was obviously leaked out.
very poor deal for us. This company had a share price of nearly £5 before the Tosca acquisition. It seems the company is destined never to make a "proper profit" on its own.
Tosca will be a major decision maker as if they don't agree highly unlikely to happen. Very very disappointed
If TAP done due diligence on R1 and the valuation is what they have offered then that’s what the market will value them at
All of this today is of speculation and assumptions made on what? A talk of a possible merge. It may not happen. If it doesn’t.... R1 get their shares cheap? R1 continue to grow? Another offer? Too many unanswered questions to assume anything no?
Price will fall back once traders have made their money
My 2019 resolution is to stop throwing money away on AIM stocks. Lost a packet on this one.
oil
"It makes our management look very needy...which makes me think they aren't comfortable about R1's performance as a standalone entity going forward."
Agree..
The big drop here,followed by the big rise on Taptica is making both at a very similar MC....confirmation that the market bet on the deal to take place....not good short term for holders here,but then again we are used to jam tomorrow....
key now is what the level of synergies are forecast to be. Surely they are in the £20-30m area if Yume was $15m. Should be highly complimentary operations.
It doesn't look like a very good deal for R1 shareholders. It makes our management look very needy...which makes me think they aren't comfortable about R1's performance as a standalone entity going forward.
TAP are saying: "We don't really need you, but at the right price we would be interested".
Perhaps R1 shareholders would be better off long to medium term with a combined outfit....but short term we are losers. It would be nice to see some cash on the table.
But I suppose it's not our decision. The big players will get their way.
More jam tomorrow....just a different flavour.
It won't happen now Dw.
Is someone able to shed numbers if buyback happens?
Yes WG but as it is all paper then the number of shares in the combined business will still be the same, they'll just be worth more. Obviously on the TAP shares I've bought the value of those will go up so I don't lose anything, just lock in the 'extra' shares. Of course if it doesn't go through I'll lose!
Sorry I don't understand the math of the deal. If TAP's share price goes higher, doesn't that mean R1 will get more money?
Ripley,
TAP announced the details in their rns, rthm didn't...
from Morningstar...
"The merger would be structured as an acquisition of RhythmOne by Taptica, with Taptica issuing 16 new shares for every 19 RhythmOne shares."
http://www.morningstar.co.uk/uk/news/AN_1548837164138450900/taptica-international-and-rhythmone-considering-gbp260-million-merger-(alliss).aspx
ripley, TAP announced the intended 16 TAP shares for every 19 R1 shares. Also stated that if R1 paid out a dividend they could restructure the deal to account for that.
Looks like the value in selling R1 and buying Tap closed quite a bit. I've off loaded 30,500 R1 shares this morning and bought 28,868 TAP. Time will tell if this was sensible but under the 19 for 16 deal I would have got 25,684 TAP shares for the 30,500. Looks good on paper unless there is another party that comes in or the structure changes. It feels like this is quite advanced though.
2 companies that struggled to unlock profits will become one that maybe will......as an holder here with many false dawns I accept that news as positive and hope that a united company maybe will come good.....eventually.
I can not see any detail of the deal , can you explain