Rhythmone Share Discussion Threads

[1gw] 05/1/2017 14:09

STT - why does R1 say (and not say) many of the things in its press releases that cause so much debate and cynicism on these boards and I am sure elsewhere? I honestly think they can't help themselves. I think there is someone in the press-release decision-making path who just loves grabbing at any form of words which presents a positive spin and there isn't sufficient challenge in the process to prevent the less substantive ones from making it through to the final draft.

[sikhthetech] 05/1/2017 14:07

exactly my view as well

1gw5 Jan '17 - 14:05 - 3954 of 3954 0 0
Actually, the more I re-read the release, the more I think it is likely this is just BM going to what he feels is a "safe pair of hands" i.e. a CFO he trusts and who did a good job for him before, at PVMG. And I suspect that the new CFO's experience (both at PVMG and elsewhere) of managing the finances in a way that perhaps facilitates an exit at some point through sale to private equity or a trade buyer may well be an added factor in his favour.

[1gw] 05/1/2017 14:05

Actually, the more I re-read the release, the more I think it is likely this is just BM going to what he feels is a "safe pair of hands" i.e. a CFO he trusts and who did a good job for him before, at PVMG. And I suspect that the new CFO's experience (both at PVMG and elsewhere) of managing the finances in a way that perhaps facilitates an exit at some point through sale to private equity or a trade buyer may well be an added factor in his favour.

In terms of Ed's departure, the scenario I find most credible is that this is Ed carrying the can for failings over the last 2 or 3 years and that the reason it is being done now is that BM feels that the business has been steadied and is convincingly on the right track - headed for growth and sustained profitability. So get the new man on board relatively early for the new phase of growth.

[sikhthetech] 05/1/2017 14:04

1gw,
from rns
"specific knowledge and familiarity with RhythmOne's operations"

your post...
"while I accept that the new CFO and R1 may benefit from the personal connections which were formed at PVMG, I find it very difficult to see how the new CFO's knowledge of 2011 PVMG operations can be a significant help to him in his new role."


I think more of PVMG is core than you think... but we'll know for sure sooner or later...
why would 1R say he is familiar with 1R operations if the bulk of old PVMG wasn't core..

Let's see what transpires...

[1gw] 05/1/2017 13:50

STT - I'm not saying none of PVMG is "core", I'm saying the bulk of what I think blinkx paid for in 2011 - i.e. the performance marketing business ("AdOn Network Inc, a long tail performance, cost-per-click advertising network") - may now be non-core.

The digital marketing agency Prime Visibility LLC is still very much alive and may well be core, I really don't know.

But even if AdOn is still by some chance classed as "core" I would still argue that the bulk of R1's current and likely future operations are likely to be materially different from the 2011 PVMG operations and therefore, while I accept that the new CFO and R1 may benefit from the personal connections which were formed at PVMG, I find it very difficult to see how the new CFO's knowledge of 2011 PVMG operations can be a significant help to him in his new role.

Incidentally, Prime Visibility Media Group Inc, Prime Visibility LLC and AdOn Network LLC are all listed as subsidiaries in the annual report, so there is no secret about them!

[sikhthetech] 05/1/2017 13:48

factual timeline...
sikhthetech5 Jan '17 - 11:56 - 2472 of 2478 1 0 Edit
The Timeline since Letter of Intent (from Severn's post)...

10th Oct - The letter of intent - Perk Acquisition
11th Oct - H1 TU ..
15th Nov H1 results..
18th Nov - holding rns - Tosca REDUCE their holding by ~3.4m shares

5th Dec - PERK ACQUISITION ANNOUNCED...

13th Dec - holding rns - RG INCREASES, inc via 1.797m CFDs
16th Dec - Dwight LEAVES
28th Dec - SC SELLS 193,100 shares
5th Jan - New CFO announced - Ed LEAVES and Richard O'Connor JOINS announced

anybody disagree or want to add anything to the above..

[football] 05/1/2017 13:45

STT they could be buys from earlier in the day and are just showing as sells now cos the share price as moved upBut you are all out bashing today trying to get out and close that short

[sikhthetech] 05/1/2017 13:44

Merged PV & AdOn then restructured senior debt sold the business to Blnx..


"Richard is a seasoned Finance executive with 20+ years of experience in the Media business. He joins PageScience from PVMG where he led the buyout of Prime Visibility and AdOn Network in 2007 to form PVMG. During his time there, Richard was instrumental in establishing financial controls and managing the business to strict profitability standards, and as a result the Company was profitable even through 2009 downturn. In 2011 he restructured the senior debt and spearheaded the $36 million sale of PVMG to Blinkx."

[football] 05/1/2017 13:41

Alex last or today's Rns says profit making which is a legal document and as to be signed off by the borad

[barkboo] 05/1/2017 13:39

Alex - if you say so. lol

[barkboo] 05/1/2017 13:33

John John - you and Gowlane are trying that little bit too hard....chill out - take a cup of good strong Indian tea. lol

[alex1621] 05/1/2017 13:30

The company is loss making?

[barkboo] 05/1/2017 13:29

John John - "will we get a holding rns after those 2 sells..." Sells? do you know what time those trades went through? lol

[sikhthetech] 05/1/2017 13:20

will we get a holding rns after those 2 sells...

[jarvis4] 05/1/2017 13:08

'And shepherding the Company's return to profitability'. Words used to thank Ed Reginelli for his contribution to date.

Nice.

[sikhthetech] 05/1/2017 12:59

500k & 225k sells just gone through...

[sikhthetech] 05/1/2017 12:58

1gw,

"not the performance marketing business"???

But PVMG markets themselves as
"Prime Visibility is a performance-driven full-service digital marketing agency focused on marketing that is measurable with clear indication of ROI."

Can you please show where PVMG is not a 'core' part of 1R...






1gw5 Jan '17 - 12:45 - 3948 of 3948 0 0
Sorry, STT. You're not seriously suggesting that from the CFO's perspective the remaining bits of PVMG (mainly the marketing agency business I think, not the performance marketing business) are a major piece of R1's operations compared to all the new programmatic stuff??

[barkboo] 05/1/2017 12:47

John John and his boys are working overtime to get a negative spin on this - scaffolders send you their love.

There is growing interest in how this stock has been played - we are also interested in how the good guys overpower the clip joint!

Coming your way soon. Anyone heard of Blackrock? lol

[1gw] 05/1/2017 12:45

Sorry, STT. You're not seriously suggesting that from the CFO's perspective the remaining bits of PVMG (mainly the marketing agency business I think, not the performance marketing business) are a major piece of R1's operations compared to all the new programmatic stuff??

When blinkx bought PVMG they were buying a performance marketing operation which happened to have a digital marketing agency attached. "PVMG also operates a digital marketing agency..." blinkx said in the press release when they bought PVMG. I rather thought that the old performance marketing businesses from PVMG would be in the "non-core" category. In fact with Perk, one of the aims of the acquisition is to beef up the performance side a bit isn't it? So I suppose there could be some legacy PVMG performance stuff that is going to be mixed in with Perk, but I still can't see it being significant relative to RhythmExchange side of the business.

[alex1621] 05/1/2017 12:40

Ed? I think I called him Reg in error.Dwight was not such a big deal for me so did not comment on it at the time, people do move on and it's not that unusual. The CFO is another matter. These guys don't tend to go prior to finalising an acquisition or merger. Archie Norman was CFO of Kingfisher and he came from McKinsey ... so yes you don't need to be qualified but you can bet that as talented as he is he would have been surrounded by very well qualified professionals. Not sure about R1's talent pool.My first thought on this announcement was that perhaps Ed was not "on board" with the merger?

[sikhthetech] 05/1/2017 12:32

why? PVMG is a subsidary of 1R and I doubt that part of the business has changed ..

1gw5 Jan '17 - 12:22 - 3945 of 3945 0 0
<...>
I do find it somewhat bizarre that the press release points to pre-blinkx involvement in PVMG as evidence that Rich O'Connor has "specific knowledge and familiarity with RhythmOne's operations" - surely most of R1's operations today are vastly different from the pre-blinkx PVMG operations? If not, that raises a whole lot more worrying questions I would have thought.
<...>

[1gw] 05/1/2017 12:22

alex - I agree absolutely both that a CFO moving on is a big deal and that linked-in profiles are marketing tools.

My points on Dwight and his linkedin profile are that (a) it appears he really has moved on, not just been removed from the executive management team and (b) it is at least possible that the reason he moved on was that the job he was brought in to do has been largely completed.

But on the other side I agree that the succession of relatively senior departures (Ed, Dwight, Sudhi and perhaps I would also include Don Hamilton in the list) should be a matter for some concern to investors.

As to whether the CFO should be a professional accountant, I think opinions differ - see linked FT article below - but if someone wants to create negative scenarios (as some do seem to want to do) then this could be seen as BM going to an old mate to get him out of trouble or to do what he wants. I do find it somewhat bizarre that the press release points to pre-blinkx involvement in PVMG as evidence that Rich O'Connor has "specific knowledge and familiarity with RhythmOne's operations" - surely most of R1's operations today are vastly different from the pre-blinkx PVMG operations? If not, that raises a whole lot more worrying questions I would have thought.

On the other hand, I think Ed should reasonably carry at least some of the blame for (i) blinkx/R1's apparent inability to give much forward guidance over the last couple of years (ii) their poor communication with investors and (iii) the huge writedowns that became necessary. Perhaps now that business is back on an uptrend (we hope), BM feels that this is the right time to let Ed go.