Audioboom Takeover Rumours (BOOM)

hTTps://uk.finance.yahoo.com/news/audioboom-london-podcast-amazon-spotify-mull-takeover-bids-115633285.html Audioboom surges as Amazon and Spotify mull takeover bids:

Hence the realistic target of 1,300p by Cavendish. Any takeover here must be at least 800p imo.

Agree with Youtube, that's an absolute no brainer. Some geeks make millions just chatting rap whilst playing fortnite etc, the kids love it! Would like to see a beat and move into profit, still see this as a major takeover target. nai, dyor.

If BOOM is cashflow positive quarter after quarter I want them to grow the business as fast as possible. Revenue growth and grabbing market share positions themself as a stronger takeover target than they currently are. That’s why I’m here because imo BOOM is acquired within a short space of time on a healthy revenue multiple.

It’s there for me at 7am cyber. This is key and makes this even more attractive as a takeover target.“Listeners continue to flock to podcasting and we are doing an incredible job of growing the Audioboom Creator Network audience faster than our competitors.”

Very strange UT trade - usually it's for a tiny number of shares to manipulate the closing price for a couple of quid (makes one's portfolio look better than it really is). But never seen one for that high a value before. I expect it'll still open at 250-260 Monday, as expected. Someone just made an expensive mistake in the closing auction. I bought some after seeing the director's purchase. Smashing company in a hot sector. An easy hold and wait for takeover bid.

I’ve taken the opportunity to add my holding and I’ll cash in once a (potential) takeover is complete later this year :-) For sale sign is above the door, no doubt in my mind. Highly probable BOOM will be valued at around $150m. This is of course all imo.

Wooty I agree. The point I was making was that *even on a p/e basis* the current SP was decent value. A takeover premium will clearly be on a range of other factors such as revenue multiple, number of users, corporate fit etc.

Fact is numbers are down, $19.2m is a superb figure and a return to cash generation which I think has been playing on the minds of a few. But ultimately remains a golden takeover target which I expect this year. I’m holding for that bid as I really can see happening soon. All imo.

It was £12.50 for full takeover. Tobin not bought now for a couple of months.

I agree about PE, but a takeover by another industry player *would* IMO allow substantial central costs to be stripped out. I would think they could potentially halve central costs and quickly add $6-7m onto the bottom line.

Q4 Trading update was on the 23rd Jan last year. All being well the SP will keep building in anticipation of it this coming January. It would be great to see us around the 400p level when the update comes out, and then given a further boost on its release. BOOM certainly has cracking momentum behind it and the perfect chart to make further significant gains imo. I hope the sp is at least 500p before any takeover rumours re-emerge in 2024. Then a 100%+ premium would be just grand :)

Yes anyone panic selling there might not be able to buy them back at the same price or less. They will also be gutted should a big premium takeover happen next year. Each to their own but I’m holding onto these very tightly.

A couple of investors I know and myself are looking for a minimum of 600p.All it takes now is a 100%+ premium takeover and we are there.Once profitability gets confirmed, competition to acquire BOOM heats up.

Something afoot Director Tobin who literally buys every week hasn’t bought any shares now for 2 months.-:-Takeover maybe

Might see a delayed buy pop up later/tomorrow which would explain it.Cyberbub, they were only 16 days into Q4 when they stated they anticipate a minimum of $19M so must have had good visibility at that point. I just hope we are sat at a minimum of 500p before any takeover news arrives, then a 100%+ premium would be most welcome :)

Sharebag, M&A is a very plausible situation for Audioboom next year. As a business it has all the hallmarks of a takeover target (return to revenue growth, cash positivity, clean balance sheet etc etc) and as you’ll be well aware having been invested for some time it does have history. M&A activity has been hot recently with the US snapping up many beaten-down UK stocks and Audioboom is a perfect candidate.

If you think trading this down here is a good idea just remember this Sky News article from last year at a time when BOOM’s mcap was £275m. Amazon and Spotify are considering rival takeover approaches for Audioboom, the London-listed podcasting group which has seen revenues and its share price surge during the pandemic. Sky News has learnt that the two digital behemoths have been exploring bids for Audioboom in recent weeks, and could decide whether to make formal offers as soon as this month. Amazon is said to have been working with investment bankers at JP Morgan on its prospective interest in Audioboom. City sources said today that an approach from either Amazon or Spotify was likely to be pitched at a significant premium to Friday's closing share price of £17.60.

Well it is a standout candidate for a takeover imho.

I think the moment Audioboom RNS to confirm they are EBITDA profitable for this quarter, the likelihood of a takeover will increase significantly.I did like this line from the trading update, note the word STRONG.The Company anticipates RECORD REVENUE in 2024, with operational improvements (including the significant reduction in minimum guarantee obligations) delivering a return to STRONG adjusted EBITDA positivity.

Very strong uptrend forming with most I know holding for a takeover. Looking forward to the RNS confirming:“(Anticipated) return to adjusted EBITDA profit in Q4”Market will like that. Should bring fresh investors in.

It's not difficult to see that a buyer in the same broad industry could strip out a big chunk of the central costs and quickly take Boom from breakeven/small profits, up to a decent profitable position, maybe £10M p a? Put that on a takeover premium p/e of 15 say (= a return of 7%) and that's getting close to £10 a share. Fag packet calcs of course, but I don't think they're that far out. People thinking we could never get a takeover approach at 600p or more when we're at 220p are ignoring many of the stream of takeovers this year which have been at very significant premiums to the SP. Undervalued is undervalued!

I’m waiting for a takeover.I know there were all the rumours on the last rise, but the markets were going nuts then and ridiculous valuations were being mentioned, but we have been told by RNS that 2024 is expected to be a record year in annual revenues as we return to quarterly growth. There’s never been a more likely time for a takeover imo especially as the valuation here is so low at the moment. Yes I know broker notes have to be taken with a large piece of salt but Cavendish have a 1300 against today’s 215p!!! Realistically I’d be happy with an offer around 600p but what about the other holders!?

Takeover pointer Tobin not bought more shares for a monthhas to mean something

Having researched this thoroughly over the past couple of weeks and checking through all RNS, I am amazed the company sits at this valuation but I guess that’s where the opportunity is.Going into 2024, they are expecting RECORD annual revenues and a move to STRONG adjusted EBITDA positivity:“The Company anticipates record revenue in 2024, with operational improvements (including the significant reduction in minimum guarantee obligations) delivering a return to strong adjusted EBITDA positivity.”The company has never really been in a stronger position and yet the sp sits pretty close to multi-years lows. Valuation is crazily cheap at the mo imo, that’s why a few of us are expecting a rapid recovery in price and/or takeover.

The moves are becoming more aggressive with each uptrend. That gap is filled before the year is out but hold into next year where the takeover talks heat up (imo), that’s where the real gains are going to be made.

If they’re not swallowed or at least part of takeover talks next year I’ll be amazed. As you say, sitting duck sums it up at BOOM’s current valuation.

It’s been some fall from grace following the meteoric rise fuelled by previous takeover rumours. I don’t expect to see the likes of £20+ again but this business, once it begins to report that shift to revenue growth and positive cash flow, comfortably becomes a £100m mcap play. My feeling tells me the share price grows in strength during Q4 closing the gap on the chart before having a stellar 2024. Only takes a few 15%+ consecutive days and it’s nudging £3. Quite easily achieved once volume picks up imo.

I think once we take out the recent high of 220p this will start moving pretty quickly towards 300p and the takeover speculation will no doubt increase. I think a few investors have been put off by the 18 month downtrend (I was one of them) but once potential investors do the research and take notice of recent RNS re EBITDA positivity and record revenues the re-rate will happen fairly quickly.

Going to be an interesting final few weeks of the year as BOOM moves towards what is anticipated to be a record revenue year and a return to positive cash flow. Fully anticipating a takeover being tabled in 2024 once Q4 23 is done and forecasted 2024 numbers are released. All imo.

That gap fill getting closer. A bullish market run on beaten down stocks that have clearly turned a corner such as Audioboom could witness fantastic gains. Holding for £5 minimum as imo takeover rumours will once again circulate in force.

Sentiment has shifted. Obvious takeover target at these levels and imo we will see a bid in due course. M&A activity has heated up recently and those big US corps will be once again all over this.