(Sharecast News) - Rupert Murdoch's News Corp on Monday confirmed it was offloading its video advertising firm Unruly to marketing company Tremor International at a large discount to the £58m it paid out four years ago.
Tremor said it would issue 8.5m shares, or 6.91% of its voting capital, to the the Times and Wall Street Journal owner, valuing the stake at £15m.
The deal is subject to an 18-month lock-up period. Tremor entered into a global partnership with News Corp giving it exclusive rights to sell outstream video on more than 50 News Corp titles in the UK, US and Australia and committed to an ad spend of £30m over a three-year period.
News UK's chief executive Rebekah Brooks will join Tremor's board as a non-executive director, her first public board appointment since she returned to Murdoch's employment four years ago after the 2011 phone hacking scandal that led to the closure of the News of the World.
Tremor's CEO Ofer Druker said: "We are delighted to be acquiring a truly world-class asset in Unruly, but equally important is the formation of our new strategic alliance with News Corp, which will provide Tremor access to globally recognised media brands, in a partnership we believe to be mutually beneficial for both companies."
Elsewhere, Tremor said adjusted underlying earnings for the year ended 31 December were projected to be in-line with expectations. However, it warned that its performance division continued to be impacted by a combination of regulatory headwinds and anticipated group revenues to be below expectations for the full year.
At 1130 GMT, Tremor shares were up 5.2% at 178.75p.
20 Dec 2023 15:55