Nexxen Share Discussion Threads

[1gw] 18/3/2024 11:03

If that was addressed to me, tapa, then I am presuming that an annual valuation was carried out in 2023 but that the external valuer couldn't find sufficient evidence to justify changing the carrying value.

The main point I was making though was that if they were booking an increase in vidaa shareholding value through the income statement, as you seemed to be speculating, then that would have to show up in the asset side of the balance sheet as well.

[ragos] 18/3/2024 10:56

Tapa,
That was 1gw!
Not me!


R

[tapa7] 18/3/2024 10:48

So Ragos,

The issue I have with that is that they clearly state "The fair value of non-marketable shares is determined by external valuer on an annual basis."

I repeat, "ANNUAL BASIS"

Correct me if I am wrong but you're assuming the external valuer has not carried out the valuation for the whole of 2023, right?


I mean, we could speculate on both theories. I would prefer if yours was the valid one because it meant more potential, but I think mine is more probable lol

Either way, we will know what the answer is in the next quarters or later in the year when I schedule a call with them.

[1gw] 18/3/2024 10:02

Tapa7 - but if they were changing the value of the investment in declared earnings then that would be reflected in an increase to the asset side of the balance sheet wouldn't it? i.e. to make the balance sheet balance, if retained earnings go up (because they've booked a profit from appreciation of the VIDAA investment) under shareholders' equity, then the value of an asset would have to go up by the same amount (or the value of a liability go down).

What I think would happen is if the market value of the VIDAA shares goes up, say to $26m, then the value of "Investment in shares" would go up to $26m under non-current assets, and the $1m increase would be booked to net income meaning the value of Retained earnings would go up by $1m.

The fact that they've kept the value of the Investment in shares unchanged from end-2022 to end-2023 in the 20-F filing means I suspect that at the time the external valuer carried out the most recent annual fair value analysis there was not sufficient information to justify a change in the carrying value.

I note that in the 20-F (note 18g, page F-40), the % holding is disclosed as 2.5%.

"On August 18, 2022, the Company completed a USD 25 million investment in VIDAA, a smart TV operating system, streaming platform, and subsidiary of Hisense. Through its investment, the Company received a 2.5% equity stake in VIDAA, a multi-year extension to exclusively share of VIDAA’s global ACR data for targeting and measurement across the Company’s platform, and ad monetization exclusivity on VIDAA media in the U.S., U.K., Canada, and Australia."

I note also that although they document the things acquired in addition to the equity stake, they do report the fair value of the equity holding as $25m.

[tapa7] 18/3/2024 09:29

Jeffblume - Note 18, section g.

Just want to put the brakes on your excitement (sorry) and say that Nexxen is likely declaring any appreciation of the $25m investment in VIDAA (unrealized gain) in their net income on a quarterly or yearly basis.

I am saying this because if you pay attention to the value of the investment they are carrying in their balance sheet, it has remained $25m ever since day 1. That suggests that they are declaring the unrealized gain as earnings or retained earnings and therefore they don't adjust that figure in the balance sheet, ever.

It also means that if they sell the stake in VIDAA, there's no cash boost, all the gains are already declared in past earning releases.

[tractorhead] 17/3/2024 17:31

Oh dear. It's back. What does that tell us? More Hedge Fund shenanigans.

Too boring for words.

[sikhthetech] 17/3/2024 16:36

Ragos

"You are in danger of falling in the same trap many of us have and are regretting it!
"

"Our year on year revenue 2021 to 2023 has been in decline or static by the accuracy
of these things."

The company newsflow has been as expected and posted.

I, and others, posted rational arguments countering the baseless ramping. The warnings over the years from blnx --->TAP/Rthm ---> trmr ----> nexn.


I also warned about the Alphonso court case, which has gone as expected.

I also warned about the profit warnings based on company/sector newsflow.

The Methbot fraud and subsequent demands by P&G, the largest advertiser, in 2016-17 was the turning point for ad tech. The Sizmek going bust was the eye opener and warning of what's to come.

The ad tech bubble warning, which 1gw and his mates were saying doesn't exist, did burst.






sikhthetech11 Nov '21 - 14:54 - 14155 of 24094 Edit
0 0 1
This reminds me of Blnx/rthm(now trmr). No comments on blnx' questionable practices until it was exposed. Look what happened...
The eq share price crashed from £28 to 400p within 6 months...

Watch for the profit warning.

Best to trade and not get caught out.

[jeffblume] 17/3/2024 16:14

Agreed that we all have been waiting a long time and Ofer has over promised and under delivered. Yet the markets do look forward. The past is the past. After the 50 million buyback the enterprise value could be close to 2024 EBIDTA. Just one spark of good news. An announcement of upping guidance would be one such catalyst.

[brimach1] 17/3/2024 12:26

Mike Lynch, former CEO of Autonomy, goes on trial in USA on Monday…

hxxps://www.msn.com/en-gb/money/topstories/mike-lynch-goes-on-trial-in-us-over-silicon-valley-s-largest-fraud/ar-BB1k1TR4?ocid=msedgdhp&pc=ENTPSP&cvid=77e9585596ac4caaa483eba05d5c1a3f&ei=97

[ragos] 16/3/2024 16:51

Jeff,
"Not only is the enterprise value ridiculously low"
Everybody thinks so except the market!
And what can one do to put the "right" value on it?
I am sure Ofer would like to know so he can correct this anomaly.

As there some sensitive souls around, this is not a go at you but an attempt to see what people think/would like to happen.

R

[ragos] 16/3/2024 16:43

Guys,
Can't get my head round this.
You are on about how great it all is. Our year on year revenue 2021 to 2023 has been in decline or static by the accuracy of these things.

We made a loss in 2023.Fact.

When is all this magic you talk about going to kick in?

This year, next year or 10 years time?

And the market (sp & analysts) does not believe it as otherwise they would mark the share price up.
Tell me where I am wrong.
To be fair, Brimach1, like myself is waiting a year to see what ACTUALLY happens.

I have been a believer for a long time, but am running out of time!


Back to my single malt! LOL!

R

[jeffblume] 16/3/2024 15:42

Not only is the enterprise value ridiculously low, when you add the VIDDA investment, which has been growing like weeds since the investment it could be valued as much as $50 million! Enterprise value (market cap minus net cash) is approximately 200 million take another 25 to 50,000,000 in VIDDA and you have a company that is currently valued at about $150 million! That doesn’t count obviously all the other assets that they have. Seems to me this is still a strong buyout candidate or you get one good quarter coming up and the sentiment will change on a flash.

[brimach1] 16/3/2024 15:26

1gw, yea, you've highlighted stuff that I hadn't thought about. Tremors investment in VIDAA was the result of a funding round in June 2022 for which Tremor was the sole investor at that time. You would assume that there would be more value in VIDAA now.

I guess it would take an IPO to establish VIDAA's market value. Possibly the next step for VIDAA?

[1gw] 16/3/2024 15:09

In terms of the VIDAA business valuation, I think VIDAA might hope Tremor's (as it was then) investment acts like a funding round to establish a $1bn equity valuation.

The problem though is that Tremor got more than just the equity in exchange for the investment - they got the ACR access, and some geographic exclusivity. So how do you put a value on this access/exclusivity in order to work out what is the fair value of the equity itself? Unless there are separate "arms-length" payment terms for the access and exclusivity, but I'm not aware of anything NEXN or VIDAA have said about this. So I think we have to wait until VIDAA raise further capital on a "clean" basis (funding round or IPO) to establish the value of the business and the value of NEXN's equity in it.

"Entered into an Agreement to Invest $25 Million in VIDAA to Strengthen Strategic Relationship with Smart TV Operating System and Global OEMs it Serves:

o Proposed investment extends the exclusive agreement to share VIDAA’s automatic content recognition (“ACR”) data for global measurement and targeting across Tremor’s end-to-end platform

o Upon completion of the investment, VIDAA will grant exclusivity in the US, UK, Canada, and Australia to the Unruly SSP and Spearad ad server, already designated as its preferred monetization platform globally

o Tremor expected to benefit from Hisense’s sponsorship of the upcoming FIFA World Cup and exclusive ad monetization and content opportunities driven by FIFA+ and other sports-related content launching on Hisense VIDAA-powered devices"

[brimach1] 16/3/2024 14:17

holgerbb…re your, In 2022 Nexxen, then known as Tremor International, invested $25 million in VIDAA. That investment made Tremor the exclusive supply-side platform for VIDAA in the U.S., Canada and Australia.

Actually, the UK is also part of that exclusive market deal for Nexxen's SSP.

Extract….In connection with the Investment Tremor has also extended, for multiple years, its exclusive agreement to share VIDAA's automatic content recognition ("ACR") data for global measurement and targeting across the Company's end-to-end platform. VIDAA has also granted exclusivity in the US, UK, Canada, and Australia to the Unruly SSP and Spearad ad server, which was already designated as its preferred monetization platform globally.

And so, Nexxen was able to launch its TV Intelligence solutions/ TV Viewership Audience offerings in the UK from 4Q23,

From the CC…VIDAA and Hisense's rapidly growing TV footprints have also enabled us the scale necessary to offer our TV Intelligence solution outside the U.S. to market such as the U.K., which launched in Q4. Since we launched our U.K. TV Viewership Audience offerings, we've seen notable customer adoption, which drove an uptick in advertising dollars flowing through our platform in that market, which we expect to reflect a significant growth opportunity in 2024 and beyond. In 2024, we will look to expand the offering to additional European and other international markets, giving us additional international growth pathways.

VIDAA is not a publicly traded company, so not sure how a value can be arrived at but, on the face of it, if Tremors $25 million investment in VIDAA in Aug 2022 reflected 2.439% of VIDAA's (privately?)issued and outstanding share capital (unknown to me), are we to assume that this business was valued to around $1.025 Billion, at that time?

[jeffblume] 16/3/2024 13:46

Is the Teads deal with VDDA a net positive for Nexxon or are they in fact taking potential business from Nexxon? Seems like Nexxon could be a buy out candidate for Teads?
I know Nexxon invested 25 million in VDDA. DO they actually own shares they can sell? Or was it an investment to get exclusivity and Nexxon does not actually own shares. This company is to cheap now with Amobee fully integrated, US elections later this year, Olympics, settlement with LG/ Alphonso, buy backs, somewhat improving ad environment. Thank you

[1gw] 16/3/2024 08:57

"The Investment is intended to reflect 2.439% of VIDAA's issued and outstanding share capital on a fully diluted basis"

[gadgie2] 16/3/2024 08:40

be nice to know what percentage we got of Vidaa for $25 million ?

Teads Deepens Partnership with VIDAA USA To Deliver Premium CTV Native Inventory Now Across Eastern Europe

Expanded Deal Makes Teads The Top Distributor Of Vidaa Native Display Ads, And Opens Door To Millions Of Customers In New Markets

[gadgie2] 16/3/2024 08:35

15/03/24 no sales from Major Holders as yet

[gadgie2] 16/3/2024 08:32

Morning better mood today and the Sun is shining :)

Usually ofer and co are selling each month 2/3 times strangely no director dealings since 29.01.24 ?

[ragos] 16/3/2024 07:31

I did a bit of rear view looking last night, using the only data available to me ie Nexxen website RNS. Only goes back to March '22.

1/3/22 75$m Buyback rns share price 586 (taken from nearest buyback rns)
20/9/22 20m$ Buyback rns share price 362
14/9/23 20$m Buyback rns share price 160
15/3/24 50$m Buyback rns share price 189 (was 215 on 6/3/24, conference call Q4/FY result)


I may have missed some, (my eyesight not good)but gives you a sense.
Make what you want of it.


R
ps I noted in some 22 director dealings rns, they were selling at 10+$/share!