If rthm were doing so well then why sell out for such a deal?
Prove the model works before clouding the figures yet again...
I think the talks started around H1 TU and that may have been the reason behind the CFO resigning 'with immediate effect' in Sept. Bring in a new CFO to dress up the company to sell it..
It say £130m under "market capitalisation"..
where you getting £147m from... it closed at that last night.
As they are in takeover talks you'll get a lot of disclosures of smaller holdings, long or short. Some of them maybe interesting.
It might explain why the Shares on Loan decreased before the talks were announced.
oil
"It makes our management look very needy...which makes me think they aren't comfortable about R1's performance as a standalone entity going forward."
Agree..
Ripley,
TAP announced the details in their rns, rthm didn't...
from Morningstar...
"The merger would be structured as an acquisition of RhythmOne by Taptica, with Taptica issuing 16 new shares for every 19 RhythmOne shares."
http://www.morningstar.co.uk/uk/news/AN_1548837164138450900/taptica-international-and-rhythmone-considering-gbp260-million-merger-(alliss).aspx
1gw,
"That means at some point R1 will produce a document to sell the deal to R1 shareholders. It will be easier to assess the deal when that document is published."
Yes, like they produced the takeover document to sell the Yume deal to rthm shareholders... How did that go and where are we now?
graham,
"So if the total valuation is £260 million and TAP shareholders would hold the majority does that make R1 overvalued."
whichever way you look at it, where's the premium to rthm's current sp going to come from?
we had similar Sky news story on rthm when rthm/Yume deal was rumoured on 31st Aug 2017...
https://news.sky.com/story/adtech-company-rhythmone-nears-185m-deal-with-us-rival-yume-11013640
It wasn't until a few days later that they actually confirmed it..
So yes could be rns tomorrow or within the next few days..
https://adexchanger.com/ad-exchange-news/rhythmone-acquire-yume-185-million-ramp-cross-screen-video/
When the rthm/yume deal was announced, the combined group had a market cap of approx $242m...
https://seekingalpha.com/article/4133782-rhythmone-set-growth-yume-inc-acquisition
Yet, after a year after completion, today that combined group, rthm, has a lower mcap of £147m ($191m)...
Video ad firms forge bigger Google rival with £260m merger
Taptica and RhythmOne plan to unveil a £260m all-share merger in London
rthm currently approx £147m, TAP approx £115m
a Google Exec's view on industry challenges and how they affect ad tech - GDPR, California Privacy Law and Apple's ITP. Apple ITP - the fallout from which he thinks is severe.
Fallout From Apple ITP Is Severe – And 7 Other Takeaways From Google Exec Sean Downey At Industry Preview
Privacy-first is the new normal.
“Many of the changes and regulations are consumer-driven.
“We’re all very aware of GDPR, and the importance of consent. But that’s just one piece impacting the ecosystem and it’s just one region.
“We all know about the California [Consumer] Privacy Act and similar things are happening in Brazil and India. It’s just the new normal.
“Then there are other things that technology companies need to do to protect users as well, outside of regulation, like the elimination of third-party cross-site cookie tracking.”
It’s not too soon, however, to talk about the fallout from Apple’s Intelligent Tracking Prevention (ITP), which has been severe.
“This was the number one talking point from all advertisers and agencies at CES – noisier than October [when Apple released a very difficult-to-track iPhone] because people were going through the results and seeing the impact.
“Programmatic is based on the ability to use third-party cookies to track and target. When that’s interrupted, there’s an impact to your results and how you do business. It’s a pretty substantial impact."
https://adexchanger.com/industry-events/fallout-from-apple-itp-is-severe-and-seven-other-takeaways-from-google-exec-sean-downey-at-industry-preview/
Tricky,
"I really don't expect a buyback to make a whole lot of difference"
Agree.
The proposed buy back is for 'up to $10m'. Currently around 5%.
It would help the EPS increase.
THE INTERNATIONAL DIAMOND WEEK IN ISRAEL STARTS TOMORROW
https://en.israelidiamond.co.il/news/israel/international-diamond-week-israel-3/
The management did the same at Yume, just before they announced the deal with rthm, so it wouldn't surprise me if they dressed up rthm before selling/merging...
Given the current industry challenges around Data Privacy - (GDPR, California Privacy Law) as well as Apple's ITP and fewer DSPs/SSPs being partnered with, I think M&A will accelerate.
The main difference with regards to a buy back is that it's entirely possible that the BoD are waiting to see what happens around GDPR, California Privacy Law and the costs involved before being able to commit to a buy back.
My 19th Jan post: - note Yume revenues were decreasing and looking at rthm H1 results, look like reduced again...
Referring to my 6th Jan post... I think rthm BoD will do similar to what happened at Yume... dress rthm up and sell..
Yume had falling revenues, had a $10m buyback.. plus special divi and then sold on for around similar sp as before the results and buy back..
Whether Singer does similar here and sells to or buys TAP or any other company is anybody's guess...
Rthm should prove their model and have solid figures and believable outlook before buying anything.
My 6th Jan post:
Just months before the rthm/Yume deal was announced, Yume also announced a $10m buy back.
For fy2016, their results were:
Revenue: $160m (2015 $173m)
Gross Margin 50% (2015 45%)
Cash (and equivalents) $65.7m
Their buy backs were around $3.61-$3.64..
https://www.businesswire.com/news/home/20170216006240/en/YuMe-Reports-Fourth-Quarter-Full-Year-2016
There was also a special divi of $1 a share, just before the rthm/Yume deal was announced...
Yume's last sp on Feb 1, before completion closed at $3.70. Compare that to the buy back prices!
https://finance.yahoo.com/quote/YUME/
Special Divi announcement:
https://www.businesswire.com/news/home/20170622005385/en/YuMe-Declares-Special-Dividend-Quarterly-Dividend
Obviously a buy back will also help INCREASE EPS, which Should come in handy when it comes to reporting "in line" forecast.
I think rthm will possibly follow a similar route.
Tricky,
"I seem to remember in July 2017 RhythmOne's 'Reduction of Capital' raised around £140m, as a distributable reserve."
Do you also remember in my post last month I mentioned that I think the buy back had been planned for over a year and only just before the Yume deal was announced, they announced the 'capital reduction'? The Yume negotiations were going on at same time as the 'Capital Reduction'.
Coincidence??
My post 14th Dec 2018:
--------------------------------
I think the buy back had been planned for over a year and just before the Yume deal was announced. I think it was probably part of the Yume deal to have it in place...
The cancellation of the Share Premium account was announced in June 2017, just as they were negotiating the deal with Yume...
So they created $186m distributable reserves..
July 2017:
"The amount standing to the credit of the Company's share premium account has been cancelled and the Reduction of Capital has created distributable reserves of approximately GBP142,825,734 (equivalent to approximately $186,359,256 at the prevailing spot foreign exchange rate as at approximately 4.00 p.m. (BST) on 26 July 2017).
The Reduction of Capital is a legal and accounting adjustment and is not expected to have any direct impact on the market value of the ordinary shares of the Company, or the number of ordinary shares in issue.
The creation of this distributable reserve as result of the Reduction of Capital will afford the Company more flexibility to make distributions to its shareholders, if thought fit by the Directors."
https://investor.rhythmone.com/newsroom/2017/07/27/confirmation-of-reduction-of-capital
fy 2018:
"On 26 July 2017 RhythmOne completed a UK High Court approved capital reduction. A copy of the order confirming the capital reduction has been registered by the Registrar of Companies and as such the capital reduction has become effective. All share premium and merger reserve attaching to the Company's ordinary shares has consequently been cancelled. The purpose of capital reduction was to create distributable reserves to provide the Company some flexibility should it wish to undertake the payment of dividends or undertake a share buy-back program in the future."
https://investor.rhythmone.com/assets/pdf/RhythmOne_FY2018_Results_140618.pdf
Reduction of share premium account
Share premium account
Reduced (or cancelled) by means of a reduction of capital. In accordance with article 3 of the Companies (Reduction of Share Capital) Order (SI 2008/1915), the reserve created on such reduction can be treated as a realised profit and, therefore, it may be distributed to shareholders or used to buy back shares.
Share premium account | Practical Law
https://uk.practicallaw.thomsonreuters.com/1-107-7253
Digital Ad Marketplaces Don't Work For TV
https://www.mediapost.com/publications/article/331061/digital-ad-marketplaces-dont-work-for-tv.html
Hopefully, should get news from IDE soon...
adding in ads.txt rankings..
1k sites. 16th/30th - up from 19th when I last reported...
5k sites - 21st/30th - unchanged since last reported...
10k/30k - 23rd/30th - unchanged since last reported...
https://adstxt.firstimpression.io/
Brassneck,
"I see after all the fuss made on ADVFN over the last quarter 'decline of 50%'
What id do you use on that BB?