Tricky_Dicky
23 Dec 2017
Re: YuMe all cash deal I believe Big Bear posted his annoyance at the current funding options for the acquisition on 29/Sep:"My concern is that the hedge funds are now in control of RhythmOne. They have decided to rule out the option of a cash purchase of YuMe or its assets ( this possibly assisted by a modest bank borrowing) because that doesn’t suit their agenda – which is not my agenda. It is not in my interests to maintain a short-term cap on the share price through price manipulation abetted by {XXXXX}, or to have our company taken private, only to relist at a much higher price in three or so years. Private shareholders in RhythmOne, such as myself, will have been shafted if that happens."
Tricky_Dicky
22 Dec 2017
Re: YuMe all cash deal Edenbrook own about 7% of YuMe stock.They say the following:November 30, 2017, Edenbrook Capital, LLC ("Edenbrook" or "We"
asked the Board of Directors of the Issuer ("YuMe" or the “Company" to abandon the proposed acquisition by RhythmOne plc on the terms announced on September 5, 2017. At the time of the announcement of the proposed acquisition, the deal had a stated value of $185 million, or approximately $5.25 per share of YuMe, with $1.70 to be paid in cash and the balance, 2/3 of the compensation, to be paid in stock of the acquiror. Since then, the steep price decline in RhythmOne's stock price has served as an anchor on YuMe's price, given the high stock composition of the offer. The original stated value of $5.25 per share is more than 45% above YuMe's current price of approximately $3.60 per share and therefore Edenbrook asks that the Board of Directors renegotiate for an all-cash offer from RhythmOne at $5.25, rather than the current cash and stock offer. Further, Edenbrook believes this change may be welcomed by RhythmOne. On July 26, 2017, RhythmOne completed a High Court approved capital reduction (the company is listed on the London Stock Exchange's AIM market). According to RhythmOne's financial results press release on December 4, 2017, "the purpose of capital reduction was to create distributable reserves to enable the Company to pay dividends or buy back shares in the future." Further commentary in the earnings release and on the earnings call that day discussed expectations of increased cash generation at RhythmOne and that they "are continually evaluating buybacks." If RhythmOne wants to buy back shares and expects to have increased cash generation, we can think of one easy way for RhythmOne to accomplish its goals: give YuMe shareholders cash instead of stock. That way, RhythmOne can keep the shares that they must believe are undervalued if they want to do buybacks. If RhythmOne wants to use cash to purchase inexpensive shares, they can buy YuMe's shares and not issue more of their own shares for the stock component of the deal. An all-cash offer would significantly improve returns to YuMe shareholders as compared to the current transaction terms. YuMe shareholders could then still choose to buy RhythmOne shares themselves if they believe that the combination will create more value, but they'd be given the choice, rather than having the shares foisted upon them. At the same time, RhythmOne shareholders would benefit from a less complex, less dilutive capital allocation plan. Such a deal seems to us like a win for shareholders of both YuMe and RhythmOne.Further, if both YuMe and RhythmOne believe that a strategic combination makes sense for both sides, converting to an all-cash offer at the original $5.25 per share insulates both companies from another party lobbing in a much lower priced cash offer for YuMe. Given the big gap between the current price and the value implied on the date of the announcement, we believe that there is a lot of room for a cash offer that would be superior to the current deal. As we still haven't seen a definitive merger agreement or other related transaction documents filed, we believe there is still plenty of time to change the terms of the deal. In the spirit of the holiday season, let's work towards an outcome that all sides would view as a gift received, not an opportunity squandered.
oilovlam
22 Dec 2017
YuMe all cash deal On 'LSE' there is talk that some organisation (Edenbrook??) is trying to put pressure on YuMe to renegotiate the deal so that it's all-cash.....I think the concensus on LSE is that Rthm don't have the cash for that.
Mome Wrath
18 Dec 2017
UK Bellweather Marketing report_Oct 17 I wonder what percentage of business is UK generated? The Bellweather report gives an indication of the reservation that 70% of UK business has toincreasing their marketing budgets.---------- ---------- -------While the net balance* of UK companies have revised their marketing budgets up this year (+9.9%), almost 70% have kept them at the same level as three months ago, in response to wider geo-political and economic instability. This is according to the Q3 2017 Bellwether Report, the quarterly survey detailing UK marketing expenditure and financial prospects. 18/10/2017 The Q3 survey reveals that around 21% of the survey panel recorded an upward revision to marketing budgets during the latest survey period while 11% of companies recorded a cut to their marketing budgets. The resulting net balance of +9.9% was notably down on Q2’s +13.1% and the lowest reading since the first quarter of 2016. More significantly, however, a greater number of companies left their budgets unchanged in Q3 at 69%, versus 57% in Q2.Marketers cited the hard to quantify impacts of the Brexit negotiations and the UK’s future departure from the EU as the primary sources of uncertainty. This was coupled with reports of reduced sales and investment and a desire to keep costs lean.Overall budget growth driven by internet as main media advertising stagnatesThe perceived advantages of cost and return of digital marketing were noted as key in driving budget growth for internet advertising – and thereby total marketing – during the third quarter of 2017. Latest data showed that a net balance of +17.0% of companies increased their internet budgets, lower than the previous quarter’s decade high of +22.7%, but nonetheless indicative of healthy expansion. Reflective of a longer-term shift, there were reports that internet marketing budgets had been increased at the cost of reduced spending on traditional print media advertising.Within internet, marketing budgets related to search/SEO rose to a greater degree as signalled by the respective net balance improving to a seven-and-a-half year high of +16.3% (Q2: +15.6%). Mobile advertising also rose to a stronger degree in Q3 (net balance: +5.8%, from Q2’s +3.0%).Other Bellwether categories to enjoy positive net balances during the third quarter included events (+9.4% versus +2.1% for Q2) PR (+7.2% from +2.1% in Q2) and ‘other’ (+2.3% from Q2’s -2.6%).Perhaps reflective of ongoing uncertainty and generally slower sales growth in the third quarter, main media advertising was unchanged (net balance: 0.0%, down markedly from +9.8% in Q2 2017). Given the strong performance of internet, which forms part of the wider main media advertising category, the latest survey data subsequently implied a subdued performance for advertising related to ‘big-ticket’ areas such as cinema, TV and radio.Stagnation of marketing budgets was also seen in the sales promotion and direct marketing categories during the third quarter (net balances of 0.0% were registered). That said, in both cases, no change in marketing budgets was a relative improvement following notable reductions seen in the preceding quarter (Q2 net balances were -10.7% and -4.7% respectively). Posting a net balance of -2.4% (Q2: -6.2%) market research was the only Bellwether category to register a net reduction in spending during Q3.Financial prospects remain underwhelming. When asked to consider their optimism regarding financial prospects for their industry compared to three months ago, nearly 24% of UK marketers were less confident, compared to around 15% that had become more optimistic. Although the resulting net balance of -8.2% was an improvement on the -12.6% seen during Q2, latest data marked the seventh successive quarter that a negative net balance has been registered.Companies were a little bit more optimistic about their own financial prospects in Q3 2017. Just over 29% of the survey panel have grown more confiden
Chis Lines
18 Dec 2017
Re: Share consolidation share consolidations cost money; they should have informed investors why they doing it; esp without positive connotations with reverse splits:[link] I wonder if the SP can hold 20p to the end of the year?
oilovlam
14 Dec 2017
Re: Share consolidation "the share consolidation doesn't make any difference, the sp would still have tracked down, to equivalent in old money - I don't see why you are hung-up about this."---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---Tricky, not 'hung up' but just confused about the delay between consolidation & the completion of the YuMe deal....I assume the consolidation was in some way linked to the deal.When the consolidation went through there was a guy on the LSE board who suggested that consolidation was often bad news for the SP...he predicted a halving of the SP to 180p. Although the SP decline may in no way be linked to the SP I cannot help thinking that the 'negativity' of the poster (he was roundly ridiculed by others) has been accurate....although we haven't quite sunk to 180....but I wouldn't bet against it.Your assertion that the SP decline isn't linked to the consolidation is equally impossible to prove.I expect there are statisticians who have analysed what has happened to the SP of companies that have consolidated.....which probably supports your supposition but I cannot forget what the LSE guy wrote.I suppose really RTHM haven't delivered what the market needs. Whilst RTHM tries to gain critical mass the profits of Google & Facebook show no bounds.....perhaps RTHM just have to show that they know what they are doing and have a plan to survive in uncertain times.
Tricky_Dicky
14 Dec 2017
Re: Share consolidation Eric Singer (Viex) was a large sharegolder in YuMe and propelled a movement to turn YuMe into profitability via an open letter demanding a seat on the Board of YuMe where he could re-structure that company.This was in May/June 2016, so he is moving fast and will doubtless tighten the screws on R1 and ensure profitability - this has to be good news.Singer will be R1's Chairman and this was part of his statement:“The combined company will have a strong financial profile providing a solid, scalable foundation upon which to accelerate growth and profitability,” said Eric Singer, chairman of YuMe. “After a comprehensive review of strategic alternatives, the YuMe board concluded that the combination with RhythmOne is in the best interest of all stockholders. This combination will provide immediate scale and will allow us to build upon the significant financial improvements underway in both companies. I look forward to serving the stockholders as chairman of the combined company upon closing and to guiding the team in realizing the combined company’s mission.”
Tricky_Dicky
14 Dec 2017
Re: Share consolidation Olovlam, the share consolidation doesn't make any difference, the sp would still have tracked down, to equivalent in old money - I don't see why you are hung-up about this.And, despite the likely play on YuMe being bought at a gamble on the differential, it has still fallen almost in tandem with R1.Perhaps the markets reflect the odds on YuMe being acquired, as otherwise it should have risen a lot more if the deal was deemed to be a non-starter.I agree, YuMe only recently managed to show profits but I think they have bits of the jigsaw that R1 wants and can benefit from quite well.As for YuMe wanting the deal to go through, their boss, E. Singer will take up a leading role in the new combine and he has some 'muscle' judging by his past roles.[link]
kristoph
06 Jul 2017
What great news, the link isn`t working for me?
kristoph
07 Oct 2016
I think the trading update was 9th Oct last year and the results in 2nd week of November!
kristoph
12 Jul 2016
A Trillion is one million one millions !!
