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Why do you keep suggesting 7.5x for DIS? That multiple doesn't make sense relative to any reasonable comp.

The search business issues are completely masking how well the other business segments are doing. Comparison is absolutely motoring, with roll-outs in other countries still to be explored.

Should have plenty of cash available but will depend on timing of incomings / outgoings, Capex etc.

The buyback pace at this share price is a mystery. Suggests that cash flow might be a constraint at the moment.

We're trading at what I think would be a reasonable private market valuation for the domains business alone (ie. Valuing the marketing business at zero).

Obviously the market disagrees with me, but there's probably some discount applied due to management, lack of transparency, bundling of the two quite different businesses.

6.5x EBITDA is complete nonsense for a domains business.

It averages revenue growth of around 10% a year, low churn, stable cash generative business.

As per the most recent RNS from a few months ago, Kestrel own 26.8% of the voting shares.

Probably higher now with the buybacks in-between...

Yes but volume was reasonably high yesterday.

Still lots of what I assume are algo trades going through.

One problem is that net debt, which was around 1.0x 2025E EBITDA is now likely to be closer to 2.0x when factoring the additional buybacks and reduced forward guidance. It's a bit of a mess.

They're also pretty much guiding for the entire profit that was earned through Google AFD to fall to zero for the year, despite the fact that we'll have had most of Q1 earnings booked before the change. Hopefully it's just overly cautious guidance...

I'd like them to be cautious on managing net debt from here. Borrowing to buy back shares can make sense for a growing business, but carnage for one with falling revenue and profit (just look at a handful of John Malone's Liberty companies).

Also really annoying that they've been buying back loads of shares at ~100p while knowing that the price will tank on this profit warning. Who wants to be that they'll now stop so that they can pay down debt...

I've added more at about 55p.

Not at all comfortable with how things have been handled but the price is now heavily discounted. The domains business alone is probably worth close to the current EV. Hopefully they've taken a very conservative view on guidance, as further profit warnings would be rough.

Have never come across as the most professional but they're looking well and truly out of their depth now.

I think it's difficult to draw any firm conclusions.

The share count has probably changed by a few percent since the initial offer was discussed. Even that alone should support a price above 125p if the deal goes through...

Agree, I'd be surprised if a sale went through at 125p. Given where Kestrel were adding shares I think they'll be looking for closer to 150p.

Have they given any info about pricing or revenue targets?

Thoughts on whether they'll need to raise cash to fund development / marketing?

Looks like a huge sell went through today for 20m shares, presume it must be Downing.