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SharesRUs101, my opinion on the RNS announcing potential bids was covered in my post of 16th April. I’ve pasted this below:

There’s been confusion about the SR RNS this morning, and some have sought to bear down with a negative interpretation in a misleading way.

The share price on Oct 2nd was the last price that was not distorted by knowledge of the Strategic Review, and was still connected to the 2026 market expectations (which the broker hasn't been able to change because of Take Over Code). Since the SR was announced the price has been as high as £8.10 and as low as £4.40 - arguably influenced by the SR and potential outcomes, rather than being influenced by business performance and fundamentals.

The outstanding performance in the Q1 trading update far out ways the hysterical response to the RNS outlining potential offers. The simple facts are clear and investors would do well to remind themselves of the exciting situation we have with Audioboom:

The business is growing fast and the company is in fantastic financial shape.

There are potential buyers who have shown interest by making offers. If these were derisory I’m sure the board would have already rejected them out of hand.

The SR continues by exploring the other options listed in the RNS.

I see all this from the precept of a long term investor. Of course there are very short term investors who are looking to make a few quid.

One must be very careful not to be swayed by those whose only aim is to misguide and spread doubt.

Will the surge in share prices of iHeart, PodcastOne and ACAST have a positive affect on Audioboom? Uncertainty shrouds AB at the moment but only as to which route the directors will decide upon. Whichever is chosen as a result of the SR there will be significant enhanced shareholder value and that is the time for PI’s to take action on selling or sticking with a new and larger entity. Something major is certainly going to happen in my opinion.

No comment on price movement today!

PodcastOne is up 14% today.

I don’t think it’s an exciting company but could Audioboom revers into It and thus get US Listing.

Excellent and informative posts this morning. Thank you for passing on your opinions.

BigShow. As per the introduction to the RNS last week on the Strategic Review :

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE MADE, NOR AS TO THE TERMS ON WHICH ANY FIRM OFFER MIGHT BE MADE.

Further into the announcement the words : a small number of parties are “ considering making an offer”.

I don’t understand the difference.

I acknowledge your comments have good merits MOneyMan. But there people out there always ready to rubbish good companies.

I had half expected some coverage in the press this weekend. Even a leak by Mark K at Sky business. I’m glad no leak as this SR process is being managed very well and leaks can put off bidders.

As noted earlier the market cap valuation of AB at less than 2x annual revenue and is still below ACAST which is above 2x. So much to play for in this initial phase. The fact that all the potential offers are in cash is extraordinary as it indicates deep pockets! And of course cash is always very attractive.

That was a very very very sage post this morning BigShow to predict blue!

Firstly, it is all down to negotiating the multiples of revenue going forward. Cavendish have used 3.5 x annual revenue to get to £13.5. For sure the forecasted annual revenue of Audioboom will have been revised significantly upwards since October last year but these cannot be released to the market. On the other hand multiples may have reduced in recent M&A activity so perhaps around £13 is about right.

Secondly, any buyer which is publicly quoted would endeavour to make the acquisition accretive to its business and their current valuation. This can be done by factoring in even greater forecasts of revenue due to a larger entity, new business opportunities, cost savings.

We can’t hope to be able to calculate a fair value as we don’t have the data. That’s why spouting out on this board values of £5 low ball or high ball of £20 is a mugs game.

Keep it simple. Trust management, directors, major shareholders and advisers to get us the best price.

There’s been confusion about the SR RNS this morning, and some have sought to bear down with a negative interpretation in a misleading way.

The share price on Oct 2nd was the last price that was not distorted by knowledge of the Strategic Review, and was still connected to the 2026 market expectations (which the broker hasn't been able to change because of Take Over Code). Since the SR was announced the price has been as high as £8.10 and as low as £4.40 - arguably influenced by the SR and potential outcomes, rather than being influenced by business performance and fundamentals.

The outstanding performance in the Q1 trading update far out ways the hysterical response to the RNS outlining potential offers. The simple facts are clear and investors would do well to remind themselves of the exciting situation we have with Audioboom:

The business is growing fast and the company is in fantastic financial shape.

There are potential buyers who have ve shown interest by making offers. If these were derisory I’m sure the board would have already rejected them out of hand.

The SR continues by exploring the other options listed in the RNS.

I see all this from the precept of a long term investor. Of course there are very short term investors who are looking to make a few quid.

One must be very careful not to be swayed by those whose only aim is to misguide and spread doubt.

Excellent points Willy88. You know what your talking about.

For the umpteenth time, the company cannot give any presentations, nor make any announcements during this period of offers being made and an SR. There will be no brokers note either.

Excellent MrBear!

Has there ever been a postitive response in the share price to any announcement by Audioboom. There is always a section of traders who pile in on the selling side. Some must just hate the company. Unbelievable.

Actually the Adelicious acquisition was well received.

As per RNS:

Shareholders are urged to take no action at this time.

It’s all about a possible sale. No one looking at the stellar Q1 results. Fair enough. The potential offers are for cash which is a major factor. This whittles buyers down to major media companies or private equity. Private equity would have be at a lower bid than an industry offer. The restrictions of takeover code have already been mentioned and I trust these are accurate.

All this would be well understood by Dowgate and professional investors.

We have to wait longer for clarity and further updates.

Success - I’m not sure of a sale either and obviously that will disappoint many. If there is no major news of a very significant partnership or merger then all shareholders will be very disappointed. Having waited 6 months and no meaningful change would be hard to take. The Final FY25 and Q1 26 will be a side show. Important for the future of course but many will see tomorrow as a defining moment in the company and as an investment.

It’ll only be a one day slippage to tomorrow.

Yes I noticed that.

Probably Wednesday 15th, though always a possibility of a one day delay. Company can’t announce due to regulations under SR.