Tag

ipo

Browsing

What: AT&T will file a registration statement for a U.S. IPO of shares in DirecTV Latin America.
Why it matters: A stock offering for Vrio could bring in up to US $100 million in proceeds and help AT&T to pay down debt as it tries to close the acquisition of Time Warner.

AT&T has decided to file a registration statement for a U.S. initial public offering (IPO) of shares in DirecTV Latin America. Variety reported a stock offering for Vrio Corp., AT&T’s holding company for its Latin American digital entertainment services unit, could bring in up to US $100 million in proceeds. Vrio’s holdings include AT&T’s satellite businesses in South American and the Caribbean, and its assets have been valued at more than US $10 billion.

AT&T is looking at the IPO and potential spinoff to pay down debt as it aims to close the acquisition of Time Warner, which analysts say will push the telco’s debt load to more than US $180 billion.

By the end of 2017, DirecTV Latin America had about 13.6 million subscribers in South America and the Caribbean. AT&T cited relatively low penetration of broadband in South America and lower internet-access speeds as limiting Vrio’s exposure to competitive threats of OTT streaming video services.

AT&T would retain majority voting control of Vrio post-IPO. The telco plans to request for a ruling from the IRS that would let AT&T pursue a tax-free spin-off of its remaining interest in common stock following the IPO. However, there’s no guarantee the IRS will grant such a ruling or even that AT&T will decide to proceed with a spinoff of Vrio.

Vrio’s businesses operate in eight South American countries and three Caribbean countries: Brazil, under the Sky brand; and, under the DirecTV brand, in Barbados, Colombia, Curaçao, Ecuador, Trinidad and Tobago, Venezuela, Argentina, Chile, Peru, and Uruguay.

Goldman Sachs, J.P. Morgan Securities, Citigroup and Morgan Stanley will act as the joint book-running managers for the IPO.

Yesterday’s announcement of the FCC, by which the U.S. regulator allows foreign ownership of Univision to exceed the mandatory 25% ceiling up to 49%  is major news. As a result of the ruling, Televisa will increase its stake to 40%. 6 ways this may impact the largest media company targeting Hispanic audiences in the U.S and the multicultural marketing space.

1. A “White Knight” Rescue for Univision

descargaThe FCC ruling is a big relief for Univision. “Without this ruling, Univision would remain cash strapped, hindering its ability to pull itself out of the current ratings slump,” Court Stroud a long time Hispanic TV executive tells Portada. “The company would continue to decline, either divesting divisions or holding a fire sale. The FCC decision is a white knight rescue for Univision,” Stroud adds.

2. Televisa gets Effective Control of Univision

televisaBy swapping debt into stock, the Mexican media giant Televisa now is by far the largest shareholder in Univision. In addition to the sizable economic and political interest the Mexican broadcaster has in Univision, it also gets significant royalties from Univision’s Spanish-language media sales. Televisa supplies about 35% of Univision’s television programming and more than half of its content across other platforms. In fact in a MOU (Memorandum of Understanding) with Univision of July 2015, Televisa negotiated higher royalties for 2018 and beyond. “Effective January 1, 2015 and through December 2017, the royalty rate on substantially all of Univision’s Spanish-language media networks revenue is 11.84 percent. Starting January 1, 2018, the royalty rate will increase to 16.13 percent.’ Televisa has a tremendous vested interest in Univision’s growth (even more if we take into account that Univision’s revenues are in dollars while the Mexican peso – Televisa is a Mexico City headquartered company  has seen a substantial devaluation since Trump became president-elect in the U.S).

3. More Resources to Invest in Programming that Specifically Targets U.S. Audiences

Univision’s longtime rival Telemundo has seen gains in its prime-time lineup. This is attributed to the fact that Telemundo specifically invests in content targeting U.S. Hispanics. Televisa Spanish-language programming is mostly targeting the Mexican consumer and re-aired in the  U.S. Televisa now has an increased incentive, because of its higher stake in Univision, to produce content for Univision that specifically targets the U.S. Hispanic consumer, including bilingual and English-dominant audiences. More and better content in the U.S. Hispanic TV and video markets should provide better options for the Hispanic consumer and beyond.

4… and  for Marketing the new U.S. Sports Broadcast Rights of Mexican Soccer Clubs

Seleccion Mexicana de FutbolWhile Univision lost to Telemundo the 2018 and 2022 World Cup broadcast rights (or it just didn’t want to pay as much), it still has a very sizable amount of broadcast rights including UEFA match rights as well as MLS and Mexican National Team performances in the U.S. In fact, it is well-known in the market that Univisioin recently bought U.S. broadcast rights of several Mexican Soccer Teams from Azteca America (including those of Atlas, Santos Laguna, Monarcas  de Morelia and Club Tijuana, Azteca will keep the rights for these clubs in the Mexican market).

Sign up for Portada’s new e-letters on Sports Marketing, Video Marketing, Travel and Entrepreneurship.

5. Less of a Debt Burden for Univision …

2013 ChallengesIn addition to a somewhat lackluster rating performance, what mostly has plagued Univision over the last few years is its very high debt load (US$ 9.3 billion at the end of 2015). This is the result of the 12.3 billion LBO (Leverage Buyout) of 2006, done at the top of the  market, which was led by financier  Haim Saban and other private investor groups. Struggling to make payments the company cut back on programming and late last year announced staff cuts of approximately 250 employees. Now with the increased Televisa stake and less debt, Univision’s financial freedom has increased.

6…. and less Pressure for an IPO, which Becomes less Likely

With the increased Televisa stake and investment Univision has less of a need to look for financing at events like an IPO. At current stock price levels of major U.S. broadcasters (depressed due to cord cutting and  other factors), Univision’s IPO price would be way below the US $ 12.3 billion valuation of the 2006 LBO. In fact, under this new scenario it is very unlikely that an IPO will happen anytime soon. However, in today’s press release Univision still talks about an IPO: “The FCC’s decision will enable Univision to accommodate increased foreign investment that may result from share purchases by the public in an IPO while enabling Televisa (an existing investor in, and business partner of, Univision) to increase its current equity stake in the company.”

What: Snapchat is changing it’ ad sales revenue model with media agencies.
Why it matters: Snapchat wants to pay content partners a flat license fee up front and keep the ad money for itself, instead of sharing ad revenue.

syfspld0_400x400The messaging app Snapchat, now known as Snap, is planning to make some adjustments to the way it works with media companies by changing its revenue model.

Since its launch in 2015,  publishers were able to sell ads in their own channels and then split revenues with the app.Whereas, Snapchat sold ads against the same content using its own sales team. Now, splits have varied depending on the deal and who sell the ads, Re-code has reported.

Snapchat wants to pay content partners a flat license fee up front and keep the ad money for itself, instead of sharing ad revenue. This resembles TV networks model to buy programming.

Snapchat Discover is only open to around 20 publishers, including BuzzFeed, Cosmopolitan, The Wall Street Journal, Food Network, and the NFL. Around 100 million of Snapchat users visit the Discover section every month, with the top-performing channels averaging view time of between 4 to 6 minutes.

Sources told Business Insider that those top-performing channels average around 10 million monthly users a month — far fewer than the amount of visitors they get to their sites — so an upfront payment may be seen as preferential to a risky advertising revenue share that requires time investment for their sales teams.

Media outlets have been selling “packages” to marketers that include Snapchat inventory, as well as ads on their other platforms like television or their websites, according to Business Insider. But now that terms have changed, it is uncertain whether media outlets would continue offering  such deals or adjust to Snapchat’s new sales model while they accept money from it.

The move of the company may seemed to be aimed at having full control over its ad inventory to be ready for a public offering that could value the firm at US$25 billion or more.

Other digital platforms like Facebook and Apple, have offered similar programs to publishers that provide them content.

 

 

What: Snap Inc., the parent company of Snapchat,  is said to be working on an initial public offering for March.
Why it matters: The IPO, which may value the company at US$25 billion, could be the largest IPO since Chinese e-commerce giant Alibaba went public.

wesrmsya_400x400Snap Inc., the parent company of Snapchat,  is said to be working on an initial public offering for March that could value the company at US$25 billion, The Wall Street Journal reports.

The March timeline is arbitrary, given uncertainties like the outcome of the presidential election and the state of the capital markets, according to the source. The company hasn’t even hired bankers yet, although is expected to do so by December.

This could be the largest IPO since Chinese e-commerce giant Alibaba went public in 2014, sources told The Wall Street Journal.

Last May, the company was valued at US$17.81 billion and received US$3.1 million in advertising revenue for the first 11 months of 2014, Reuters reports.

The company has told investors that it expects to make between US$250 million and US$350 million in advertising revenue this year, according to The Journal.

The company will reach near US$1 billion in revenue in 2017, which means a US$25 billion IPO would be priced at 25 times its projected revenue numbers.

Apparently, the company was looking to go public as soon as later this year or early 2017. Snap’s chief strategy officer, Imran Khan, is part of the team that is working on the filing

 

What: Univision is getting ready for its IPO. The company filed a registration statement on Form S-1 with the SEC relating to a proposed initial public offering of shares of its Class A common stock. In addition, Univision Holdings, Inc. and Grupo Televisa, together with Univision’s major shareholders, have entered into a Memorandum of Understanding (“MOU”) and certain subsidiaries of Univision and Televisa entered into an amendment to their existing Program Licensing Agreement (the “PLA Amendment”).
Why it matters: Univision is by far the largest Hispanic media company and its backers are getting ready to monetize their investment through a public offering. The revised agreement between Univision and Televisa includes key points like term extension, revised royalty computation,equity capitalization  and conversion of  debentures. The number of shares to be offered and the price range for the proposed offering have not yet been determined.

PpaqCjsJ_400x400U4xpomT6_400x400Univision Holdings, Inc. and Grupo Televisa, S.A.B.  have announced that, together with Univision’s major shareholders, they have entered into a Memorandum of Understanding (“MOU”) and that certain subsidiaries of Univision and Televisa entered into an amendment to their existing Program Licensing Agreement (the “PLA Amendment”).

In addition, Univision filed a registration statement on Form S-1 with the SEC ( the U.S. Securities and Exchange Commission) relating to a proposed initial public offering of shares of its Class A common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined.

Morgan Stanley, Goldman, Sachs & Co. and Deutsche Bank Securities Inc. are acting as lead book-running managers for the proposed offering.The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus relating to the proposed offering, when available, may be obtained from Morgan Stanley & Co. LLC, Attention.A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

PLA Amendment

Under the PLA Amendment, the terms of the existing strategic relationship between Univision and Televisa have been amended as follows:

  • Term Extension: Univision’s exclusive U.S. broadcast and digital rights (with limited exceptions) to Televisa’s programming including premium Spanish-language telenovelas, sports, sitcoms, reality series, new programming and feature films, will remain unchanged. Subject to Univision completing a public offering of its common stock that results in net proceeds to Univision of a minimum agreed upon amount and no change of control having occurred, the PLA Amendment extends the term of the PLA from its current expiration date of at least 2025 to at least 2030.
  • Revised Royalty Computation: In exchange for Univision agreeing to make certain additional revenue subject to the royalty, effective January 1, 2015 and through December 2017, the royalty rate on substantially all of Univision’s Spanish-language media networks revenue is 11.84 percent, compared to 11.91 percent under the prior terms. On January 1, 2018, the royalty rate will increase to 16.13 percent, compared to 16.22 percent under the prior terms. Additionally, Televisa will continue to receive an incremental 2 percent in royalty payments on such media networks’ revenues above an increased revenue base of US$1.66 billion, compared to the prior revenue base of $1.65 billion. The royalty rate will again increase to 16.45 percent starting in June 1, 2018 and for the remainder of the term, compared to the prior rate of 16.54 percent. With this second rate increase, Televisa will receive an incremental 2 percent in royalty payments above a reduced revenue base of US$1.63 billion.

“These amendments to the PLA and the terms of our MOU underscore the strength of Univision’s relationship with Televisa and the significant and unique benefits of our mutually beneficial partnership”

Also, under the terms of the MOU, Univision, Televisa and the major shareholders of Univision have agreed to the following:

  • Equity Capitalization Amendment: The equity capitalization of Univision will be adjusted to realign the economic and voting interests of Televisa and Univision’s other stockholders. As a result, Televisa will hold common stock with approximately 22% of the voting rights of Univision’s common stock. The classes of Univision shares of common stock to be held by Televisa will also provide Televisa the right to designate a minimum number of directors to Univision’s board of directors.
  • Conversion of Debentures: Televisa will convert US$1.125 billion of Univision debentures into warrants that are exercisable for new classes of Univision’s common stock. As a result of the conversion, Univision’s annual interest payment obligations will decrease by approximately US$16.9 million. The conversion of Univision debentures into warrants will have the effect of reducing Univision’s consolidated debt by US$1.125 billion. Univision has agreed to pay Televisa on the date of conversion, US$135.1 million as consideration for the conversion using a combination of existing liquidity and previously restricted cash, which will become unrestricted as a result of the conversion.

“These amendments to the PLA and the terms of our MOU underscore the strength of Univision’s relationship with Televisa and the significant and unique benefits of our mutually beneficial partnership,” said Randy Falco, President and Chief Executive Officer of Univision. “By taking these steps and our pursuit of other related initiatives, Univision is in a stronger competitive position going forward. Televisa is the best Spanish-language content producer in the world, and we are pleased to continue to have its support as we enter the next exciting chapter of Univision’s history.”

“We are excited to enter into a new phase in the relationship with Univision, the leading media company serving Hispanic America. Univision today is one of the most successful and diversified media organizations globally thanks to the hard work and dedication of Randy Falco and his team,” said Alfonso de Angoitia, Executive Vice President of Grupo Televisa. “With these transactions we strengthen our relationship further and reiterate our full commitment to Univision and its future. On a personal note I want to thank Haim Saban for his leadership of the Company and personal dedication in bringing these transactions to fruition.”

Join us at PORTADA Mexico!

What:App SnapChat raises US$537.6 million, reaching an estimated US$16 billion valuation which makes the company one of theworld’s most valuable startups.
Why it matters: Snapchat is growing fast internationally, including in parts of Latin America. Snapchat still has to face competence from big players like Whatsapp and Facebook own chatting service , which have led the company to consider a possible IPO in the nearest future in order to get more financing.

BoBocYRY_400x400Photo-messaging app Snapchat has raised around US$537.6 million, after the US$200 million it had already raised in March.These numbers suggest that Snapchat might pull in another US$112.3 million in funding, bringing its total for this year alone to US$850 million.

With this latest funding, the company would be valued at a US$16 billion, making it one of  the world’s most valuable startups, behind Uber and smartphone maker Xiaomi.This valuation would also place Snapchat firmly in the company of a select handful of apps that have ridden virality to stratospheric valuations.

“Snapchat is growing fast internationally in parts of Latin America and in Saudi Arabia. The emerging world, however, has not adopted the service. “It’s not data-light”, you have to afford to pay for the data,” Emily White, COO of Snapchat, recently told  Wired.  However, she offered no update on how many people are using the service overall.

Snapchat is growing fast internationally in parts of Latin America and in Saudi Arabia. The emerging world, however, has not adopted the service.

Snapchat, which was founded in 2011, allows users to take photos and videos that self-destruct after a set time.The app has seen a rapid rise in its popularity, powered especially by a key advertising demographic: teenagers and millennials in the developed world. According to research firm ComScore in March, 71 percent of its US users are 18 to 34 years old.That is why the app is  hard for third-party services to measure because so many of its users are under age 18, an age beneath which many services don’t track. The company has offered no official update since May, when it confirmed that 700 million photos were shared daily, and stories were being viewed 500 million times a day.

Messaging services are becoming some of the most highly valued startups in the industry. Last year, Facebook paid US$19 billion for WhatsApp.

Likely IPO

Evan Spiegel,Snapchat’s 24-year-old CEO,disclosed publicly for the first time that the company has been considering going public. It is clear the app knows hor to raise money but not how to make it.

A report in January concluded that 200 million people actively use Snapchat, up from 100 million users last August. That’s still far less than WhatsApp’s 800 million active users or even the 600 million people who use Facebook’s own chatting service called Messenger.Snapchat has helped the company raise cash from some big names in Silicon Valley. Venture capital firm Kleiner Perkins Caufield & Byers invested US$20 million within the last year and Chinese e-commerce giant Alibaba made a US$200 million investment in the company in March that valued the company at US$15 billion.

The company has generated little revenue, despite various efforts to attract advertisers. In January, it launched Discover, a feature that allows delivering videos created by major companies such as CNN, Yahoo News, National Geographic, the Food Network and ESPN, among others.

 

What: Chicago-based Centro, an Advertising-technology company and media management software seller, has raised US$30 million in Series B funding from Wall Street firm Neuberger Berman Private Equity Funds, making this the company’s second round of venture funding and the second-largest venture investment in a Chicago company this year.
Why it matters: The transaction proves that Ad-Tech is still hot. The move gives Centro the possibility to expand globally as well as  positioning itself as a potential IPO candidate. Investment will serve to continue the company’s push towards becoming a centralized ad tech platform that can combine the more operational business automation with the programmatic RTB exchanges.

uW7rEHJJ_400x400Chicago-based Centro, an Advertising-technology company and media management software seller, has raised US$30 million in Series B funding from Wall Street firm Neuberger Berman Private Equity Funds.The round also included previous investor FTV Capital, a San Francisco investment fund. This was Centro’s  second round of venture funding and the second-largest venture investment in a Chicago company this year, beaten only by the US$56 million NEA invested in Raise.com.

proxyAccording to Centro CEO Shawn Riegsecker, the investment will serve to continue the company’s push towards becoming a centralized ad tech platform that can combine the more operational business automation with the programmatic RTB exchanges. For that purpose, the cash will be invested in new technology and acquisitions, such as its 2013 purchase of SiteScout, a software platform for real-time bidding on digital advertising. Riegsecker plans include “an aggressive expansion of our engineering and product team for the platform.”

the investment will serve to continue the company’s push towards becoming a centralized ad tech platform

Riegsecker emphasized that the new funding will lead to Centro’s next acquisitions, citing attribution analytics, cross-device targeting and an expected move into programmatic TV in 2016 as areas where the company is actively eyeing potential targets.

The move gives Centro, which currently operates in North America, the chance to expand internationally. “We’ve maintained rapid growth in the US and not focused on having offices in UK or Brazil, but at some point we need to take the product global,”

With 2,500 customers ,the company also has plans to double its business, based on gross volume of advertising handled, to about US$400 million this year. Headcount, which is about 600, will most probably reach 750 by year-end. In this way, Centro is gradually positioning itself as a potential IPO candidate. This Series B makes that possibility even more likely : Riegsecker says Centro still is looking a potential public offering. “We continually look to what’s going on in the public markets. But the last 12 to 18 month got pretty choppy for ad-tech companies,” he said, noting recent struggles of Rocket Fuel, which announced big layoffs last month after its stock plunged by 75 percent. “Our decision was to raise a Series B.”

Shawn Riegsecker: We’ve maintained rapid growth in the US and not focused on having offices in UK or Brazil, but at some point we need to take the product global

Centro, which initially focused on automating the guaranteed aspects of digital advertising, was founded in 2001. Though previously many observers expected Centro to move towards acquiring a DMP to fill that role, Riegsecker said that he’d rather empower clients to utilize their own data, as opposed to acquiring or building that technology themselves.

“As afar as a DMP goes, strategically, I fully buy into the idea of BYOD (bring your own data).There are a lot of DMPs that have raised tens or hundreds of millions to build out sophisticated technology. We have some DMP capabilities … but we want to be the best DMP integration platform.” he said. “We believe the race is on to become the software provider of a single sign-on platform that automates 100% of your digital spending,” he added.

This investment marks the first direct stake for Neuberger Berman in an advertising technology company.Funds such as Neuberger, T. Rowe Price and Fidelity all have been making later-stage investments in promising tech companies. Just like FTV invested US$22.5 million in Centro in 2011.

Join us at PORTADA Mexico!

 

What: After many weeks of rumors, Israeli content delivery platform Outbrain is said to have filed confidentially with the US Securities and Exchange Commission (SEC) for a US$1 billion Nasdaq IPO.
Why it matters: If the company succeeds, it would be one of the largest IPOs ever for an Israeli company. The IPO, due to the first quarter of 2015,  is still subjected to SEC scrutiny.

descargaIsraeli content delivery platform Outbrain is said to have filed confidentially with the US Securities and Exchange Commission (SEC) for a Nasdaq IPO, the WSJ reports.

According to the report, the company would seek to raise as much as US$250 million in an IPO, placing the company’s valuation at about US$1 billion. However, it remains unclear how much of the company it would seek to sell in any listing.

 

Were Outbrain to succeed, it would be one of the largest IPOs ever for an Israeli company

Outbrain may go public in the first quarter of 2015 if the filing passes SEC scrutiny. The company has appointed Goldman Sachs and JP Morgan as lead underwriters for any listing.

Founded in 2006 by CEO Yaron Galai and General Manager Ori Lahav, Outbrain is a content delivery platform that provides Internet content and article recommendations (it recently signed a major exclusive deal with Time Inc). The platform has over 400 employees in 15 offices worldwide, out of which at least 100 are in its Israeli R&D and data management facility. Employees outside Israel work in sales for the company, including a strong presence in New York City. A Miami unit targeting the Latin American market is going to open soon.

Outbrain provides links to a site’s older content and to content from other sites, to engage users in previously posted content that may have gotten overlooked on a site, and to provide a richer user experience for web surfers on a site. For this purpose, Outbrain uses cookies to determine what a user is interested in, and provides the appropriate links. When a user clicks on a promoted link from another site, the site that hosted the link gets paid for the referral, and Outbrain takes a cut. According to the company, some 100,000 content sites, including sites like CNN, The New York Times and The Wall Street Journal, use the company’s platform.

 

What: After many weeks of rumors, Israeli content delivery platform Outbrain is said to have filed confidentially with the US Securities and Exchange Commission (SEC) for a US$1 billion Nasdaq IPO.
Why it matters: If the company succeeds, it would be one of the largest IPOs ever for an Israeli company. The IPO, due to the first quarter of 2015,  is still subjected to SEC scrutiny.

descargaIsraeli content delivery platform Outbrain is said to have filed confidentially with the US Securities and Exchange Commission (SEC) for a Nasdaq IPO, the WSJ reports.

According to the report, the company would seek to raise as much as US$250 million in an IPO, placing the company’s valuation at about US$1 billion. However, it remains unclear how much of the company it would seek to sell in any listing.

 

Were Outbrain to succeed, it would be one of the largest IPOs ever for an Israeli company

Outbrain may go public in the first quarter of 2015 if the filing passes SEC scrutiny. The company has appointed Goldman Sachs and JP Morgan as lead underwriters for any listing.

Founded in 2006 by CEO Yaron Galai and General Manager Ori Lahav, Outbrain is a content delivery platform that provides Internet content and article recommendations (it recently signed a major exclusive deal with Time Inc). The platform has over 400 employees in 15 offices worldwide, out of which at least 100 are in its Israeli R&D and data management facility. Employees outside Israel work in sales for the company, including a strong presence in New York City. A Miami unit targeting the Latin American market is going to open soon.

Outbrain provides links to a site’s older content and to content from other sites, to engage users in previously posted content that may have gotten overlooked on a site, and to provide a richer user experience for web surfers on a site. For this purpose, Outbrain uses cookies to determine what a user is interested in, and provides the appropriate links. When a user clicks on a promoted link from another site, the site that hosted the link gets paid for the referral, and Outbrain takes a cut. According to the company, some 100,000 content sites, including sites like CNN, The New York Times and The Wall Street Journal, use the company’s platform.

 

What: The software marketing company TubeMogul raised just US $43.8 million on Friday,with its’ IPO price at US $7 per share.Although the company had expected to raise at least  raise US $93 million, the stock finished on Friday at US $11.50,up 64% on its first day of trade.
Why it matters:
TubeMogul’s lower IPO pricing reflects consolidation trends in the ad-tech sector particularly for online video advertising players. While demand for online video advertising services (SSPs, DSPs, DMPs) is growing at a very high rate, the supply and capacity of companies catering to the sector may be even larger. Therefore, the downward pressure in the valuation of these companies.

descargaVideo demand-side platform TubeMogul priced the shares for its public offering on Thursday at US $7 per share and finished on Friday at US $11.50,up 64% on its first day of trade.  Monday Morning (July 21) the stock was trading in the US US$ 10.6- US$ 11.7 range. Thanks to prior investors, who bought US $25 million of the shares offered in the deal (US $5 million of insider buying from Trinity Ventures, adding to the US$20 million indicated by Foundation Capital) , and the basement price of the shares TubeMogul found itself raising around US $43.8 million when then company had expected to raise US $93 million. Tube Mogul has software that allows agencies and advertisers to run commercials on online video portals such as YouTube and Vimeo.

The change comes amid significant investor pessimism around technology stocks and ad tech companies in particular.
 

“TubeMogul will raise 38% less in proceeds than previously anticipated and will command a market cap of US $244 million, down 38% from US $394 million,” said an item on Nasdaq.com.TubeMogul’s revenues were US $22 million in Q1 2014 versus US $9.6 million during the same period last year.  Total expenditures through the platform was US $48 million in Q1 2014, versus US $16.3 million in Q1 2013.Also, the company said gross margins had expanded to 72% for Q1 2014 versus 65% in Q1 2013. Finally, net loss was US $800,000 in Q1 2014 versus US $1.9 million in Q1 2013.

The CFO of Tremor Video expects consolidation to cut the number of its competitors effectively in half.

Consolidation in the Ad-Tech Sector

TubeMogul’s IPO comes at a moment when consolidation in the Ad-Tech sector, particularly in the online video advertising ecosystem, is a clear trend. As Seeking Alpha notes in a recent article, “it is no secret that the ad tech industry is rapidly consolidating, particularly with companies like YuMe that focus on online video advertising. “At a recent presentation, the CFO of Tremor Video stated that he expects consolidation to cut the number of its competitors effectively in half. This premonition is quickly becoming the reality. Look at the major transactions that happened just during the last two months.
On June 19, Google acquired mDialog, a video ad tech analytics company that uses an SDK approach, similar to that employed by YuMe. Twitter acquired TapCommerce on June 30, a small mobile app advertising company for a reported $100M. This company has technology that is similar to YuMe and Millennial Media , both of which feature an SDK driven mobile app monetization platform.
In addition, on July 2, Facebook (FB) announced that it acquired LiveRail. This company is an SSP, supply side platform. It is geared towards serving publishers and has an estimated $100M in 2013 sales. TechCrunch, citing sources with knowledge of the deal, said that the purchase price is about $400M-$500M.

What: The software marketing company TubeMogul raised just US $43.8 million on Friday,with its’ IPO price at US $7 per share.Although the company had expected to raise at least US $93 million, the stock finished on Friday at US $11.50,up 64% on its first day of trade.
Why it matters:
TubeMogul’s lower IPO pricing reflects consolidation trends in the ad-tech sector particularly for online video advertising players. While demand for online video advertising services (SSPs, DSPs, DMPs) is growing at a very high rate, the supply and capacity of companies catering to the sector may be even larger. Therefore, the downward pressure in the valuation of these companies.

descargaVideo demand-side platform TubeMogul priced the shares for its public offering on Thursday at US $7 per share and finished on Friday at US $11.50,up 64% on its first day of trade.  Monday Morning (July 21) the stock was trading in the US US$ 10.6- US$ 11.7 range. Thanks to prior investors, who bought US $25 million of the shares offered in the deal (US $5 million of insider buying from Trinity Ventures, adding to the US$20 million indicated by Foundation Capital) , and the basement price of the shares TubeMogul found itself raising around US $43.8 million when then company had expected to raise US $93 million. Tube Mogul has software that allows agencies and advertisers to run commercials on online video portals such as YouTube and Vimeo.

The change comes amid significant investor pessimism around technology stocks and ad tech companies in particular.
 

“TubeMogul will raise 38% less in proceeds than previously anticipated and will command a market cap of US $244 million, down 38% from US $394 million,” said an item on Nasdaq.com.TubeMogul’s revenues were US $22 million in Q1 2014 versus US $9.6 million during the same period last year.  Total expenditures through the platform was US $48 million in Q1 2014, versus US $16.3 million in Q1 2013.Also, the company said gross margins had expanded to 72% for Q1 2014 versus 65% in Q1 2013. Finally, net loss was US $800,000 in Q1 2014 versus US $1.9 million in Q1 2013.

The CFO of Tremor Video expects consolidation to cut the number of its competitors effectively in half.

Consolidation in the Ad-Tech Sector

TubeMogul’s IPO comes at a moment when consolidation in the Ad-Tech sector, particularly in the online video advertising ecosystem, is a clear trend. As Seeking Alpha notes in a recent article, “it is no secret that the ad tech industry is rapidly consolidating, particularly with companies like YuMe that focus on online video advertising. “At a recent presentation, the CFO of Tremor Video stated that he expects consolidation to cut the number of its competitors effectively in half. This premonition is quickly becoming the reality. Look at the major transactions that happened just during the last two months.
On June 19, Google acquired mDialog, a video ad tech analytics company that uses an SDK approach, similar to that employed by YuMe. Twitter acquired TapCommerce on June 30, a small mobile app advertising company for a reported $100M. This company has technology that is similar to YuMe and Millennial Media , both of which feature an SDK driven mobile app monetization platform.
In addition, on July 2, Facebook (FB) announced that it acquired LiveRail. This company is an SSP, supply side platform. It is geared towards serving publishers and has an estimated $100M in 2013 sales. TechCrunch, citing sources with knowledge of the deal, said that the purchase price is about $400M-$500M.

What: Although it had announced plans to go public in 2014, Outbrain has added US $35 million in its latest fundraising round, bringing its overall investment to US $99M, thus staying ahead of the content recommendation business.
Why is it important: [CEO Yaron Galai says that] Outbrain rivals Google and Facebook in terms of the page views that it generates. Given they plan on building on mobile and self-serve products, viral content services are undoubtedly an interesting development area for marketers and advertisers.

Outbrain‘s widgets help publishers like CNN, The Guardian, ESPN, Hearst, Rolling Stone, Fast Company and Slate increase traffic at their websites, by sponsoring the links that appear on them to recommend related stories to readers. Yesterday, despite several IPO rumours that ran mostly across the Israeli press (where the company is based in part), Outbrain announced its latest fundraising round, bringing its total venture capital haul to almost $100 million since its founding in 2006.

This investment will help Outbrain improve its algorithms and prompt its worldwide expansion.

HarbourVest led the funding round, that also included Carmel, Index and Gemini Israel ventures, as well as GlenRock Israel, Rhodium and Lightspeed Venture Partners.

CEO Yaron Galai said the company is focusing on expanding Outbrain’s tools for mobile devices, where more and more people now consume news. He also reiterated the company’s commitment to making quality story recommendations and building trust with readers and publishers.

Outbrain plans to continue its expansion and recently hired Jeff Davison as its first CFO.

Sources: AdWeek, Gigaom, TechCrunch.

What: Although it had announced plans to go public in 2014, Outbrain has added US $35 million in its latest fundraising round, bringing its overall investment to US $99M, thus staying ahead of the content recommendation business.
Why is it important: [CEO Yaron Galai says that] Outbrain rivals Google and Facebook in terms of the page views that it generates. Given they plan on building on mobile and self-serve products, viral content services are undoubtedly an interesting development area for marketers and advertisers.

Outbrain‘s widgets help publishers like CNN, The Guardian, ESPN, Hearst, Rolling Stone, Fast Company and Slate increase traffic at their websites, by sponsoring the links that appear on them to recommend related stories to readers. Yesterday, despite several IPO rumours that ran mostly across the Israeli press (where the company is based in part), Outbrain announced its latest fundraising round, bringing its total venture capital haul to almost $100 million since its founding in 2006.

This investment will help Outbrain improve its algorithms and prompt its worldwide expansion.

HarbourVest led the funding round, that also included Carmel, Index and Gemini Israel ventures, as well as GlenRock Israel, Rhodium and Lightspeed Venture Partners.

CEO Yaron Galai said the company is focusing on expanding Outbrain’s tools for mobile devices, where more and more people now consume news. He also reiterated the company’s commitment to making quality story recommendations and building trust with readers and publishers.

Outbrain plans to continue its expansion and recently hired Jeff Davison as its first CFO.

Sources: AdWeek, Gigaom, TechCrunch.

What: Twitter announced its IPO under the ticker symbol TWTR, expecting to raise at least US $1B.
Why is it important: This is the most anticipated stock sale since Facebook went public last year. However, there are several concerns around its profitability.

Last Thursday evening, San Francisco-based social network Twitter made public its initial public offering filing with the US Securities Exchange Commission, its stock ticker symbol being TWTR. The filing indicates Twitter hopes to raise up to US $1 billion.

In its IPO filing, Twitter revealed that it has more than 200 million monthly active users –with 100 million of those deemed “daily active users”– who tweet 500 million tweets per day, and it stated that from 2011 to 2012, revenue increased by 198 percent to US $316.9 million, while its net loss decreased by 38 percent to US $79.4 million.

The company said the number of shares of common stock that will be outstanding after this offering “is based on 472,613,753 shares of their common stock,” including preferred stock.

Twitter also revealed in the prospectus that it earned far more of its advertising revenue from American users than from foreign users, and it noted that it was targeting Argentina, France, Japan, Russia, Saudi Arabia and South Africa for faster growth than in the United States. Analysts say the social network’s uses, ranging from sharing mundane thoughts on local television shows and sports to organizing social protests and political gatherings, has played a major role in its adoption in both emerging and developed countries.

Of all Twitter users, 75 percent used mobile devices to access the service, and the company said in its filing that it intends to “continue to increase the monetization of its platform” by improving its ability to single out users for “promoted” tweets, or ads, and by expanding its outreach to international advertisers. It stated as well that 75 percent of its users entered the service through mobile devices during the second quarter and that 65 percent of its revenue came from mobile ads. Nevertheless, prices for Twitter advertisements, which make up most of the company’s revenue, are falling, the prospectus indicated.

There’s a remarkable fact regarding Twitter users in emerging markets, however: many of them still use low-cost phones that are not fit to take advantage of Twitter’s mobile offerings, meaning the quality of its overseas customer base will depend partly on the continued penetration of higher-end smartphones. The company will also likely have to ramp up its global work force as it looks to increasing sell advertising in regions with multiple languages and cultures (not to mention it will have to fight to draw attention to its platform and away from rival services).

Twitter’s main streams of advertising revenue are thought to be promoted tweets, promoted trends and promoted accounts. According to the New York Times, Zachary Reiss-Davis, an analyst at Forrester, said the social network would eventually need to show how it could evolve its global advertising efforts and make its offerings more sophisticated.

“Twitter has done a good job of growing its international user base,” he said, “but now it has to work with marketers to create advertising experiences that work for those international users and for marketers.”

However, Twitter still faces a series of technical challenges in turning user interest into cold cash, ranging from spotty Internet connections to government bans on the service and fast-growing rivals.

Before the IPO filing was released, Santosh Rao, senior analyst and head of research at Greencrest Capital, said he did not believe Twitter was profitable yet, though if it is, “it’s probably very minimal, but that doesn’t concern investors.” And he added that “profitability is not a priority. Monetizing and revenue growth are what investors are interested in. Profitability will come later on.”

Sources: UPI, Gigaom, Bloomberg Buisnessweek, ABC News, New York Times.

What: Twitter announced its IPO under the ticker symbol TWTR, expecting to raise at least US $1B.
Why is it important: This is the most anticipated stock sale since Facebook went public last year. However, there are several concerns around its profitability.

Last Thursday evening, San Francisco-based social network Twitter made public its initial public offering filing with the US Securities Exchange Commission, its stock ticker symbol being TWTR. The filing indicates Twitter hopes to raise up to US $1 billion.

In its IPO filing, Twitter revealed that it has more than 200 million monthly active users –with 100 million of those deemed “daily active users”– who tweet 500 million tweets per day, and it stated that from 2011 to 2012, revenue increased by 198 percent to US $316.9 million, while its net loss decreased by 38 percent to US $79.4 million.

The company said the number of shares of common stock that will be outstanding after this offering “is based on 472,613,753 shares of their common stock,” including preferred stock.

Twitter also revealed in the prospectus that it earned far more of its advertising revenue from American users than from foreign users, and it noted that it was targeting Argentina, France, Japan, Russia, Saudi Arabia and South Africa for faster growth than in the United States. Analysts say the social network’s uses, ranging from sharing mundane thoughts on local television shows and sports to organizing social protests and political gatherings, has played a major role in its adoption in both emerging and developed countries.

Of all Twitter users, 75 percent used mobile devices to access the service, and the company said in its filing that it intends to “continue to increase the monetization of its platform” by improving its ability to single out users for “promoted” tweets, or ads, and by expanding its outreach to international advertisers. It stated as well that 75 percent of its users entered the service through mobile devices during the second quarter and that 65 percent of its revenue came from mobile ads. Nevertheless, prices for Twitter advertisements, which make up most of the company’s revenue, are falling, the prospectus indicated.

There’s a remarkable fact regarding Twitter users in emerging markets, however: many of them still use low-cost phones that are not fit to take advantage of Twitter’s mobile offerings, meaning the quality of its overseas customer base will depend partly on the continued penetration of higher-end smartphones. The company will also likely have to ramp up its global work force as it looks to increasing sell advertising in regions with multiple languages and cultures (not to mention it will have to fight to draw attention to its platform and away from rival services).

Twitter’s main streams of advertising revenue are thought to be promoted tweets, promoted trends and promoted accounts. According to the New York Times, Zachary Reiss-Davis, an analyst at Forrester, said the social network would eventually need to show how it could evolve its global advertising efforts and make its offerings more sophisticated.

“Twitter has done a good job of growing its international user base,” he said, “but now it has to work with marketers to create advertising experiences that work for those international users and for marketers.”

However, Twitter still faces a series of technical challenges in turning user interest into cold cash, ranging from spotty Internet connections to government bans on the service and fast-growing rivals.

Before the IPO filing was released, Santosh Rao, senior analyst and head of research at Greencrest Capital, said he did not believe Twitter was profitable yet, though if it is, “it’s probably very minimal, but that doesn’t concern investors.” And he added that “profitability is not a priority. Monetizing and revenue growth are what investors are interested in. Profitability will come later on.”

Sources: UPI, Gigaom, Bloomberg Buisnessweek, ABC News, New York Times.

What? Twitter Inc has confidentially submitted a document to the SEC with plans for an initial public offering of stock.
Why it matters: With Twitter going public, the company could have a 40 percent annual growth at a $1 billion annual revenue run rate, according to specialists.

twitter-birdTwitter Inc has filed for an initial public offering with U.S. regulators, the company said yesterday in a tweet.

Goldman Sachs is lead underwriter, a source familiar with the matter said on Thursday, according to Reuters.

Twitter filed for an IPO confidentially under a 2012 law intended to help emerging corporations with less than $1 billion in revenue go public.

Chief Executive Dick Costolo has for years waved off suggestions it intended to go public, saying the company remained flush with cash. Facebook’s mismanaged 2012 debut and subsequent share-price plunge also chilled the consumer-dotcom IPO market. Facebook, however, has clawed its way back to its $38 IPO price in July, and the stock is at a record high after touching $45 this week.

Twitter, which has been valued by private investors at more than $10 billion, should break even this year and is on track for 40 percent annual growth at a $1 billion annual revenue run rate, Max Wolff of Greencrest Capital estimated.

The company makes money by inserting paid, targeted ads that resemble ordinary, user-generated content. Twitter’s success with its advertising model created a new paradigm for mobile advertising and prompted Facebook last year to adopt a similar ad product, called Sponsored Stories. But Twitter was one of the first to prove that in-stream ads could be a viable way to make money in the mobile era.

 

What? Twitter Inc has confidentially submitted a document to the SEC with plans for an initial public offering of stock.
Why it matters: With Twitter going public, the company could have a 40 percent annual growth at a $1 billion annual revenue run rate, according to specialists.

twitterTwitter Inc has filed for an initial public offering with U.S. regulators, the company said yesterday in a tweet.

Goldman Sachs is lead underwriter, a source familiar with the matter said on Thursday, according to Reuters.

Twitter filed for an IPO confidentially under a 2012 law intended to help emerging corporations with less than $1 billion in revenue go public.

Chief Executive Dick Costolo has for years waved off suggestions it intended to go public, saying the company remained flush with cash. Facebook’s mismanaged 2012 debut and subsequent share-price plunge also chilled the consumer-dotcom IPO market. Facebook, however, has clawed its way back to its $38 IPO price in July, and the stock is at a record high after touching $45 this week.

Twitter, which has been valued by private investors at more than $10 billion, should break even this year and is on track for 40 percent annual growth at a $1 billion annual revenue run rate, Max Wolff of Greencrest Capital estimated.

The company makes money by inserting paid, targeted ads that resemble ordinary, user-generated content. Twitter’s success with its advertising model created a new paradigm for mobile advertising and prompted Facebook last year to adopt a similar ad product, called Sponsored Stories. But Twitter was one of the first to prove that in-stream ads could be a viable way to make money in the mobile era.