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Cheers!
https://investors.tremorinternational.com/news-releases/news-release-details/tremor-international-enters-agreement-acquire-amobee

Conference call tomorrow to explain all!

Using debt to part fund purchase.

I sure did, boy!
https://www.youtube.com/watch?v=6P7GT0E-5dU

They won't get anything through a shareholder vote, given the part rebellion last time. The whole point of the Nasdaq listing was to raise capital for acquisitions - they've had their dues.

Dog, Amobee has an accounting year end of 31 March. Hence, their 2021 accounts are from April 2020 through to March 2021 - ie basically 2020 for everybody else. What is more concerning, is that they did not recover in 2021, and have posted a big loss for their YE 31 March 2022.

I am making an assumption that the press reports and leaked data etc would have been info re YE March 2021, as the 2022 figures are only recently out. Hence, the delay in now finalising a deal - as you say, they need better due diligence than for R1. (Is anything of R1 now actually left? It was a full stack, but they have kept the dsp from Tremor, and used the ssp from Unruly!!!)

They better not pay $200m for a business losing $70m and the revenue probably still falling. Guess it depends on what tec they have, maybe some key staff, maybe it operates in new markets TRMR wants to get into more (eg Europe, Asia, Australia) and an acquisition is the cheaper / quicker route in?? Singtel must be even more desperate to get rid of it now - could go for a very knock down price.

Yep, they definitely want more scale on the DSP side (to further differentiate from Magnite & Pubmatic). MediaMath probably a potential target also. Maybe some serious re-negotiations over price and breaking up Amobee - like seriously very cheap.

"""
But Tremor is making noise this week.

For one, Sky News reports Tremor is in talks to buy Amobee, the Singtel-owned DSP. That deal is said to be hovering around $200 million.

Amobee isn’t a major CTV player but would be a solid chunk of DSP market share for Tremor (and, apparently, the deal would be great for the public company’s EBITDA).

In February 2020, AdExchanger asked Tremor CEO Ofer Druker, just after the acquisition of Unruly (and its exclusive SSP rights with News Corp.): “If you could snap your fingers and pick up a couple points of market share in any particular category of ad tech, what would it be?”

His answer: “The DSP.”
"""
https://www.adexchanger.com/ad-exchange-news/ad-tech-covets-rose-with-netflix-tremor-shakes-things-up/
"The DSP is our priority. We want to bring more demand on our platform and have more relationships with key brands."

Figures from Singtel 2022 (March YE) must be out. Reports are that Amobee has turned seriously loss making - $70m loss (EBITDA) against reports of a decent profit in 2021. Changes everything re the acquisition. Speculation from the bankers that the deal would boost our earnings is clearly .... Cannot Recommend A Purchase (stock brokers joke) .... C R A P.

https://www.dbs.com.sg/private-banking/aics/templatedata/article/recentdevelopment/data/en/DBSV/072022/ST_SP_07192022.xml

https://www.theedgesingapore.com/capital/brokers-calls/analysts-keep-buy-singtel-dbs-lifts-earnings-and-tp-upward-earnings-revision

https://sg.finance.yahoo.com/news/analysts-keep-buy-singtel-dbs-220938227.html

Sparky,
the only hidden nasty would appear to be themselves!

Dog - who else is left and potentially for sale? Viant (DSP) and Acuityads are listed, but duffers. Who owns Mediamath and could TRMR afford them? Who else could or would want Amobee?

Having looked, seems MediaMath are unlikely to survive as an independent - sound too over indebted.
https://www.prnewswire.com/news-releases/mediamath-executes-recapitalization-transaction-strengthening-platform-for-the-future-301530262.html

https://www.mediamath.com/news/mediamath-executes-recapitalization-transaction-strengthening-platform-for-the-future/#:~:text=In%20concert%20with%20the%20recapitalization,indirect%20majority%20owner%20of%20MediaMath.

Struggling for the old smaller names. Just thought of Beeswax dsp - apparently bought by Freewheel ssp to form a full stack. Alphonso were once connected with Beeswax after they ditched TRMR. All pointing to some major consolidation going forwards. As you said before - things to get interesting in this sector. How about TRMR and Magnite!

Mithaq have just added and disclosed. I'm not sure for certain, but this is sign the Amobee deal is off. As insiders, they may have been in the know and barred from all trading during discussions (for some months). The company is not obliged to tell us the deal is off - they never really told us it was on, but merely confirmed press speculation. If correct, then a major, major disappointment. Must say, I was wondering what was taking so long, 4 or 5 weeks since the leak a deal was close.

Truely hope I'm wrong here, we really need a step up in scale.

Nice one jl - common sense tells us that the figure is way off. I would expect it to rise in proportion to the increase in revenue. This would leave a very healthy cash balance, in line with the increase in profits / EBITDA.

On those figures, full year will be at the £300m mark. They suggest annual EBITDA margin will be getting on for 2% - so £6m EBITDA expected, rough calculation, I'm getting eps of 25 / 30p mark. Interestingly, they disclose the £500m target revenue and at least 4% margin - ie £20m. This will give eps at the 100p mark. Two to three years out, a sp of £15 to £20 is not an unreasonable expectation - and if the company continues to grow, so will the sp there afterwards.

As I have said before, patience will win out here. LTH need not worry, it's in the title - long term hold. This is the bottom and the sp will resume an upwards trend. The results will be the real catalyst, even the interims are going to show decent profit, which the market is not seeing, nor priced in (yet) .... but in time, it will .... it always eventually does.

Second thoughts, they will hit the £500m sooner than I suggest above, given the monthly bookings numbers. Sparky - you need not worry over the share options, they will get the required sp.

https://www.youtube.com/watch?v=64wZQ4Kqeao

https://www.youtube.com/watch?v=hEQAGFL7r0M

https://www.youtube.com/watch?v=xCvkrS3tlco

https://www.cnbc.com/video/2022/07/13/netflix-microsoft-partnership-isnt-investible-part-of-the-story-for-two-years-says-evercores-mahaney.html

Some guy called Brad Smith sits on both boards - sums it up really! President of Microsoft, been with Netflix since 2015.

Hi Dog & Wouterous

Good answer Gdog. Can't see Microsoft wanting TRMR now they have Xandr. There is speculation that TRMR ran their slide rule over buying Xandr last year when it was for sale, but that's all I know on that. Perhaps an outside chance that Disney could be interested in TRMR, but they are with Google at the mo, and seem to be working with TTD and going with UID2, so perhaps happy using third parties and the open web. There must be many broadcasters similar to ITV, across many countries who are yet to get into streaming with ads and I would guess that is the size of customer TRMR will go for (rather than the Netflixs of the world). Horses for courses - big international media companies will go with the big tech guys, or build their own, and national / regional broadcasters more likely to go with someone the size of TRMR. I think ITV have a licence agreement for ITV to use Amobee tech for their ad streaming offering. So plenty still to go for on a global scale.

https://www.fool.com/investing/2022/07/14/the-trade-desk-roku-magnite-digital-advertising/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

https://finance.yahoo.com/video/netflix-could-looking-exit-ad-152601199.html

LM reckons the tech build will take at least until late 2023 - thinks it's the wrong decision, will delay ad revenue at Netflix, which is not priced in (ouch), that it seems a rushed choice in time for next earnings. May be a move towards Microsoft buying Netflix.

https://www.bbc.co.uk/news/business-62158936

https://blogs.microsoft.com/blog/2022/07/13/netflix-names-microsoft-as-partner-for-new-consumer-subscription-plan/

https://about.netflix.com/en/news/netflix-partners-with-microsoft

Interesting, and not the right solution (but then I'm biased.) Sounds like a rushed decision and solves the conflicts with competitors in going for Freewheel or Google. I suspected they would want some one 'big' on the size of Freewheel or Google, but excluding them I was struggling for a realistic choice - TRMR, plus Amobee plus Netflix would have been utopia all round.

Sounds like they have gone with Microsoft as they need security of a large international tech monster behind them. But Xandr is in no position to take this much demand on without massive investment from Netflix & Microsoft - as they say, very early days and a ton of work to do to get this up and running properly and in a short term time frame. Unlikely to be smooth sailing for them. Some vagueness / ambiguity in the pre-scripted PR, which sounds like it could be a walled garden approach - if that is the case, it will not be the success that they need it to be.

TTD, Magnite et al will all be grilled on this in the coming earnings calls. See what they have to say!

CTV ad spend is growing at a considerably faster rate, however – up 57% in 2021 to $15.2 billion, and predicted to grow another 39% to $21.2 billion in 2022.
https://www.televisual.com/news/avod-the-rise-of-ad-funded-streaming/

Disney said its ad-sales operation, led by Rita Ferro, would implement “this expanded capability with advertisers over the next several months, while setting the stage to support interoperability across all demand partners and platforms.”
https://variety.com/2022/tv/news/disney-trade-desk-advertising-technology-agreement-streaming-1235314589/

Ad tech appears to have a massive secular tailwind of change behind it, esp in CTV with Disney+ and Netflix coming on board (and moving towards programmatic rather than 'standard'), European broadcasters are seriously lagging and will also be wanting to catch up over the next few years, so even with macro headwinds it is looking increasingly unlikely that companies in this space will see a reduction in revenues this year (or next). I suspect TRMR are on the ball and as they have said, they are in discussions with strategic partners all the time, as normal course of business .... .... .... .... watch this space!

Whilst waiting -
https://www.youtube.com/watch?v=E3bgXBgj1u8

https://www.youtube.com/watch?v=0zLNQgTYvdI

https://www.youtube.com/watch?v=izHTGLX8-E0

And just in time for the TU, for them to issue their first broker report.

TU - 19th July
Interims due - 27th Sept

https://www.yugroupplc.com/financial-calendar/

Updated shareholders page -
https://www.equalsplc.com/content/investors/shareholder-information

Re CA, there has long been some concerns (perhaps valid, perhaps not) that CA would have been put in the position of a forced seller and shares would have been dumped indiscriminately on the market. However, it seems as other institutions become interested in EQLS growth prospects, their holding is being 'placed' following trading updates and or results, as EQLS shows more of its hand. Also, perhaps, new institutions have some leverage over CA in not bidding up the sp, knowing that they are liquidating their holding. It is expected that once CA are gone the sp will lose its shackles and move upwards towards analysts targets. (Though, of course, current macro forces are suppressing multiples.)

Threadneedle have more than doubled their holding, bought another 10 / 11 million on the 6th. Seller? Crystal Amber is the obvious guess, but Jo Hambro (Pendal) have also been recent consistent sellers and may now have totally sold out. We'll soon know.