hmmm17 Aug 2015 09:34
TechnologyArdvark's insight:
Cellcast UK - a leading provider of participatory television programming and interactive telephony technology for the fast growing cross-platform digital entertainment is currently in advanced talks with U.S. giant Google Inc. The deal, which will see Google using Cellcast's internet telephony technology for it's upcoming online gaming platform will transform Cellcast into a Tier-1 provider. Google are also said to be interested in using Cellcast's online content technology to streamline projects.
Cellcast's core strengths are constantly put into use as a leading UK provider of participatory programming, a technology partner for third parties and an investor in dynamic new ventures that benefit from our experience, know-how and position as a quoted company.
Discussions have been ongoing since Friday and will continue today. The deal, said to be worth £22m over the next 2 years, would be transformational for the UK stock exchange listed company. All things going well it would generate £8m per annum thereafter in years 3 & 4.
Cellcast currently trades at 1.10p as at close on the 13th August 2015 giving it a market capitalisation of £850k. The recent results for 2014 showed annual revenue of £12.2m and net profit of £2.9m, which sees the current price undervalued even without the Google deal.
We give Cellcast UK a very achievable 35p target short term with the Google deal.