Rhythmone Share Discussion Threads

[bennywin] 07/10/2016 07:38

Let's hope this article is correct in the case of R1

hxxp://www.theatlantic.com/business/archive/2014/11/when-is-the-best-time-of-day-for-a-company-to-dump-bad-news/383049/

[kendonagasaki] 07/10/2016 07:10

Twitter share price falls by 20% as Google pull out of bid!I wonder why?

[dyardley] 07/10/2016 07:07

I agree with 1GW the longer we wait for the trading update the least likely a poor update. I'm looking for a bumper update

[dyardley] 07/10/2016 06:29

GB £/US $ .... $1.24If results are good this is the icing on the cake and much more probable a takeover target

[loafofbread] 06/10/2016 22:32

The big US firms get hit for 40% tax if/when they repatriate cash to the US.

I assume our massive loss last year means Rone won't be paying any tax any time soon?

£/$ favours a US buyer (or Chinese) doing a mix and match.

[gowlane] 06/10/2016 22:29

1gw, it does seem that the programmatic is what we are all about now, if we start showing that we can make lots of money from it, then I suppose the buyers will 'beat a path to our door'.

But my feeling is that Criteo are better at pure marketing than we ever were, we were always boasting about the techie side. The best search engine - lol! Now it is programmatic, the full stack etc

We still have that techie focus, they started by asking what does this customer actually want and how can we give it to them. They designed their business model around that. And they simply blew us right out of the water.

I think Sorrel's eyes would glaze over in seconds listening to this techie stuff. Anyway lets see what tomorrow / next week brings

[sikhthetech] 06/10/2016 21:56

Private Market Places...

[sikhthetech] 06/10/2016 21:44

huge changes were Header Bidding & Real Time Bidding (RTB)....

doing away with waterfall ad buying..

[1gw] 06/10/2016 21:25

gowlane - what I think R1 has going for it is automation (programmatic platform), reputation (no, seriously!) and something of an "end-to-end" (as opposed to point) solution. I'm a bit hazy on the end-to-end argument but those who know more than me about the nuts and bolts (viz shroder and big bear) seem to agree on this point.

So a company that could leverage R1's newfound reputation for being ahead of the curve on cleaning up its act could see a benefit. Equally a company that was still doing far too much business by direct sales rather than programmatic could benefit (mainly synergy cost-savings). Then there are those companies that have some automation, but perhaps don't have the speed advantage ("super-computer" and co-location/peering perhaps) or don't have quite as complete an offering. It may be that with its international datacentres R1 is also ahead of the curve, compared to more US-focused companies, with developing its non-US programmatic business.

Those arguments perhaps apply both where R1 is bought and where R1 is the buyer (and to a "merger of equals"). And equally, I suppose, Tax synergy through the possibility of shifting profits from the US regime to the UK regime could potentially work in all scenarios and would never be the acknowledged driver of a deal I think, but would be a nice upside if the deal made sense strategically. So who buys perhaps depends as much as anything on relative size, access to financing and who thinks they need the other most. A larger US company which is worried about losing out the longer it leaves R1 to gain share might be the more prepared to pay a premium for control I would have thought.

No names from me, but Big Bear has posted more than once about the deficiencies of some of the other US-based ad-tech companies and I would have thought these might be a place to start looking if finance was doable.

[sikhthetech] 06/10/2016 21:23

1gw, good post...
good point about whether 1R being UK registered or headquatered is the criteria for inversion - I can't remember whether the inversion discussions we had on Arris-Pace evolved around Pace being headquatered or registered here...


There are 273 companies registered at the same registered address... Note 1R and Blinkx UK holding appearing here, as they are separate entities...
They have moved service offices a few times over the years...




Brexit - it's the US perception... currently UK is seen as an uncertain place to be... there's likely to be several major corporate/tax/economic changes over the next few years... recruiting skilled labour might become difficult... nobody knows for sure so there's a lack of clarity over the near term future in UK... will that mean US, or any other country, companies setting up in Mainland Europe..???

Agree, the 1st step is to get 1R back on growth and profitability...
That's down to BM and his awaited TU...

Hopefully, no vague statements and no 'seasonality'... and good guidance..

[sikhthetech] 06/10/2016 21:08

gl, Criteo has it's own problems... the industry is fast moving and it is worth reading up about latest changes, headwinds etc..

Criteo: Perils Of Ad Blocking

[1gw] 06/10/2016 20:57

I don't know the detail on inversion STT, but 1R is a UK-registered company, so I would have thought inversion savings would be a potential benefit of a combination with a US-registered company - although as was the case with Arris-Pace, the acquiring company might not assume (in its base case) that those benefits would endure for more than a few years.

I'm not sure what brexit has to do with anything given R1 doesn't (as far as I am aware) have a big existing UK-revenue business at risk from a UK economic downturn? Or do you think R1 benefits from some EU agreement for its sales into the US? As it (hopefully) grows its UK and European business it can't be any worse doing it from a UK-registered company than from a US-registered company can it? And in the world of internet advertising it can't be too difficult to set up and arrange sales out of an EU-registered subsidiary if that is necessary can it?

As for Toscafund, I think they would be interested in maximising their expected return. If they saw a combination that created sufficient value they might well support such a combination rather than risk going the buyout route first and then finding out that the combination was no longer available. But if they don't see such a combination in the near-term, then I agree a move by them to take it private might be an option if they think they can get it before its "true" value is realised by the market.

But the first step for most of the options I think is to get R1 back on a demonstrable growth and profitability trajectory. Which brings us back to the eagerly-awaited and hopefully imminent trading update.

[sikhthetech] 06/10/2016 20:32

I'm not sure inversion tax savings would be available... 1R has it's headquaters in US... also depends on what the US authorities future plans are for curtailing inversion tax saving...

Given the uncertainty Brexit has created, would US companies consider 1R?...

If 1R can convince that they have a sustainable and materially profitable company then I think Tosca will strike before anyone else..

[1gw] 06/10/2016 20:15

Personally I would have though a number of US-based adtech companies might be interested in R1 if they were convinced the combined company would be sustainably and materially profitable. This would presumably open up the possibility of inversion tax savings in addition to any strategic benefits and cost synergies.

[sikhthetech] 06/10/2016 19:57

gl, absolutely, BM must announce some cracking figures and good outlook... the Chinese seem to be buying good quality companies... the M&A market is good atm but anyone interested in 1R???

[gowlane] 06/10/2016 18:44

Hmmm . . . yes that would be a bit dubious Alex, I would certainly want to know what his intentions were, Geh2 strikes me as a bit of an opportunist

Although SBM let her raise her skirt a little with that Q1 update, R1 is going to have to put out a bit more to attract the right kind of suitors, those with deep pockets, who are expecting a glimpse of the full Monty next week

Now who would actually be a likely bidder for R1 and what would they get out of it? Anyone know where would the most likely synergies be in the marketplace out there?

[sikhthetech] 06/10/2016 17:53

Jarvis, according to Barky, it's next Wed, 12th...

You don't think he is wrong, again, do you...well, there's a surprise...

No cigar for you then ;-)



BARKBOO5 Oct '16 - 10:54 - 43373 of 43375 0 0
Scaffolders tell me we could be updated by the company on the 12th - pencilled in?


BARKBOO6 Oct '16 - 08:46 - 43375 of 43376 0 0
I see a few of guys on the RTHM threads expected an update this week - close but no cigar!

[jarvis4] 06/10/2016 17:27

A couple of bullish buys just before the close of play. Maybe there will be Friday update after all.

[sikhthetech] 06/10/2016 15:17

Six Broken (or Almost Broken) Ad-Tech Promises

[alex1621] 06/10/2016 13:47

Not if the "offer" is from Geh2 Gowlane?

[alex1621] 06/10/2016 13:20

Tuesday for me ... positive, hoping for steady progress update.