UBC Media Share Discussion Threads

[smithie6] 22/5/2014 16:30

BTW
Is/was there no shareholder vote ref. the transaction for Audioboo....it being a large investment for UBC ?

For Audioboo....UBC shareholders have been royally shafted imo....
(the big gain in Audioboo (X3 in value) has been for new investors....not for UBC which only holds 19% of Audioboo after the deal)

and I wonder whether shareholder group legal action is possible ?
especially if we can find that any regulation has not been complied with.

[smithie6] 22/5/2014 12:29

Simon Cole sold just over 1/2 of the UBC shares in Audioboo

since then the value of Audioboo has multiplied by 3.


Well done Simon.

You appear, at first sight, to be intentionally crucifying the long sufferring shareholders of UBC.

,,,and especially bitter for UBC holders since UBC had funded Audioboo...while it was super small and super risk
and been the lead investor...and had the option to own over 50%


Simon, it would appear to have been IMPOSSIBLE to have done it worse.

(you had for example....a large number of PIs who were taking risk by holding UBC shares....and who were fans of AUdioboo...and would have liked to have been asked to subscribe new money to help it grow.

Why was that not done ?

To invite in complete strangers....who then make/made the profit from Audioboo listing....
while the people that funded the losses of AUdioboo in past years...and lent it money ...(UBC and hence UBC shareholders....

well, appears that you spat in our tea.

VERY UNHAPPY

(I will be voting NO to all upcoming resolutions)

If Simon Cole is incompetent....see 10 years of UBC share price.....then perhaps it is time to remove him from the bod.

[loobrush] 21/5/2014 21:02

UBC was only ever worth 3p on its own and was loss making so not surprised that new shareholders only paid that price for shares. However this could be a winning combination and we have not yet been advised how 7 digital is going.
I think there may be some pleasant surprises in store when more info is released, that may send the share price higher.
Simon Cole owns a few shares and he must be happy and must expect them to rise to more than the previous high.

[smithie6] 21/5/2014 11:31

bod will now be much stronger.....

incl. a Dolby man !

so fingers crossed

[smithie6] 21/5/2014 11:30

Amazed that Ben Drury still owns 10% of new entity....

7Digital has been loss making and having cash raisings for years...

would have expected that by now he would have close to 0%...
unless he keeps subscribing new cash in each cash raising....
which I can not believe....

(since I assume he is a youngish techie....and not a rich grey haired investor)

[stockonomist] 20/5/2014 22:30

mug punters tend to get the Board/Management they deserve so hard to see why mach100 is getting so worked up

[michaelmouse] 20/5/2014 22:20

Mach100 - "Doesn't today's update say 7Digital haven't been performing as well as expected of late?"

No quite the opposite, a significant increase in recurring revenues and improved gross margins:-

"7digital's unaudited management accounts for the quarter ended 31 March 2014 showed a 34 per cent. year-on-year increase in monthly recurring technology licensing revenue to £1,075,000 (2013: £800,000) with an overall gross margin for the business of 50.3 per cent. (2013: 45.2 per cent.). Total turnover of £2,462,000 was recorded in the quarter ended 31 March 2014 which was 16 per cent. down on the same quarter in 2013. This was ahead of internal expectations and reflects some expected declines in digital content sales.

At the end of December 2013 the normalised yearly run-rate of monthly recurring technology licensing revenue was £4.6 million (2012: £2.5 million)."

Highly speculative yes, but the enlarged entity is potentially very exciting. They also retain a 20% stake in Audioboom.

An interesting year or two lies ahead for long term holders.

Michael.

[mach100] 20/5/2014 21:05

Hero I admire your optimism but we have all been sold a pup while Simon Cole has a director's box at Crufts. Where is UBC'S million loan? How many UBC holder's apart from Cole would have voted for this? UBC has a track record of disappointment and failed investments. To royally shaft PI's with a deal like this beggars belief. UBC were 21p at one stage. Now 3.5p. Probably too late now but I wouldn't put a bitcoin into one of his companies. I knew this would be a bend over and drop your trousers moment and so it proved. Doesn't today's update say 7Digital haven't been performing as well as expected of late? We will have to run like Usain Bolt just to stand still. You have some BODs resisting mergers and takeovers as they don't create value for shareholders. Simon Cole is actually destroying value. Shameless!

[hero] 20/5/2014 20:21

euclid5 - It does initially seem a bad deal for UBC shareholders but wait and see in three weeks time your new shares will launch at 27p and probably double in the first few days giving you back your old 6p share value. You them will have a much smaller share of a much bigger pie that I reckon will further treble in value over the next year - see my reasoning from my post earlier today. I do not think this would have been achievable with UBC on its own. So it may well prove to be in the best interest of UBC shareholders but we will just have to hope and wait and see!

[euclid5] 20/5/2014 20:02

smithie6 - I agree with your post above - bad deal overall for UBC s/holders - the writing was on the wall as the shares were stuck in the 3p range for a long time & seems they valued 7D much higher than UBC - not a good deal S Cole has put together - make me so angry when they say add value to s/holders yet they drop 50% on re listing

[chesty1] 20/5/2014 18:37

Well someone picked up 700,000 @2:50pm today @3.5p

No wonder you could sell all afternoon close to mid price.

A lot will be gutted with today's news BUT I see it as a solid base to move this one forward, which is why I took a dabble this am.

[chesty1] 20/5/2014 15:04

Slowly recovering during the day so someone is seeing value down here.....

[smithie6] 20/5/2014 14:15

was just thinking of the street sellers singing in the film Oliver Twist
..in the expensive street...viewed from a window....


...Simon Cole
....'who will buy....UBC.....'
'free'....just pay for the cash/share assets it holds !!!


----

SC....imo ..gone within 3 months is my bet. See if I am right.
..with a pat on the back for agreeing the deal..and a handsahek for loss of office...and to keep a pile of share options in the merged entity...in return for him voting yes to the deal for his wadge of UBC shares and oferring the deal to UBC shareholders.

(almost all of the turnover is from 7Digital...and around 80% of the share capital...I cant see much need for UBC staff on the bod now)

[tullynessle] 20/5/2014 14:12

UBC Media with 25% of the combined Group - see Extract 1.

Extract 1:

"Under the deal, the existing shareholders of 7digital,................, will control 75% of the new company."





UBC merges with 7digital to create £30m multimedia group
Digital music service bought in reverse takeover as multimedia company looks to create global music and radio business

Mark Sweney
theguardian.com, Tuesday 20 May 2014 10.11 BST

Multimedia content company UBC has acquired digital music service 7digital as part of a reverse takeover to create a £30m global digital music and radio business.

UBC Media, which provides radio content to 250 companies, including the BBC and Yahoo, has acquired 7digital for £16.5m.

The next step in the deal will see the formation of a new public company, 7digital group, which will list on the stockmarket from 10 June with an expected stockmarket valuation of £29m.

Under the deal, the existing shareholders of 7digital, which provides digital music services for brands including Samsung, HTC and Pioneer, will control 75% of the new company.

Article continues.....

[smithie6] 20/5/2014 13:42

hazl
me....much the same as you....
(I have a small pile !...so looks like I'm stuck with waiting to see what happens....
at least my average is around 4.5p.....with a bit of a lift it easily could get back to that over coming months)

[smithie6] 20/5/2014 13:40

monte1 20 May'14 - 13:12 - 1570 of 1571 0 0

Was it ever going to be anything different?

-----

...well, I havent tried to analyse the numbers in detail....
but it looks to me like the value given to UBC patents is close to zero....

and in the paperwork I can see no mention of the value of the 1M loan from UBC to 7Digital

a a rough guess is looks to me like UBC has perhaps been valued just as per its cash

which is nuts imo....since IMG initially invested in it because they saw it as useful to IMG....due to its patents and its existing expertise and contacts and clients etc....
but that seems to have been valued at almost 0 in this deal from my quick look at it.


----

...at present I'm quite dissapointed in the small part of the merged entity that UBC shareholders have received...

although around 56% of holders are voting in favour of it....so they think it is OK

(maybe the 7Digital MD was a much better salesman than the UBC representative in the merger talks)

[hazl] 20/5/2014 13:39

well, smithie6 of course it was a disappointment to see them marked down like that this morning and clearly nothing short term is in the small investors favour.
However,I can repeat what I have said elsewhere that the internet industry is still young in my view and eventually y these may be worth having.
I am not adding at this point but probably will keep the few I have.

[hero] 20/5/2014 13:36

Well that's a bit of a shock to the system - at first glance you have to wonder
what on earth is going on but after delving a little you can see that the problem is the new company strike price given at 27p and a UBC dilution conversion 10:1 means UBC shares will struggle to push above 3p until the
conversion date other-wise it would make an instant premium on the strike price.

Of course I could be wrong and some savvy investors might realise UBC shares over the next few weeks offer a guaranteed low price entry into the new entity and keep on buying which would push the UBC price up and up !!

Once you start to work things through you see that it is perhaps what would need to happen so create a rush to buy at the undervalued 27p price. Lets hope the Financial Press come to the same conclusions and report likewise.

If you just look at 7 Digitals current earnings they should be around 15m pa so if you take a modest per of 10 it could give a value of 150m whereas the new shares priced at 27p only gives the co a value of 29m so there could be a rise of around 6 fold within a year. Equates to an old UBC share price of circa 18p.

If you add in UBC and Audioboom values plus combined synergies then that should add even more value to the share price.

[monte1] 20/5/2014 13:36

I would be intrigued to 'hear' if any avatars can dig up any success story on re-listing following a 6 months suspension from AIM.

[mach100] 20/5/2014 13:27

So even if the share price post-consolidation goes up 100% we are back to where we started but with only a 20% stake in Audioboo. If that is what Simon Cole comes up with on behalf of UBC holders after six months, we can only be thankful he didn't have longer! I think we should sell Cole to Newcastle!