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Velti plc Message Board

  • pdaniel714 pdaniel714 Sep 10, 2013 2:06 PM Flag

    Stock is up because....................

    Twitter is buying MoPub for $300 million plus.

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    • Twitter Buys MoPub For $350M To Up The Ante In Mobile Advertising

      MoPub, a startup that helps mobile publishers manage their ad inventory, has been acquired by Twitter, giving the social network another route into building its advertising business, specifically on mobile platforms.

      We’re hearing that the company was acquired for $350 million in stock and that Twitter won out over other bidders like ad network Millennial Media, which itself has been making more acquisitions itself, buying JumpTap last month for $200 million. We’re also hearing that if you look at the prices that Twitter shares are trading for on secondary markets, the deal could actually be worth significantly more.

      Neither MoPub, Twitter, nor Accel responded to immediate requests for comment. (Update: both MoPub and Twitter have now confirmed the deal, but not the price. MoPub will continue to work with multiple publishers under its new owner, opening up the possibilities of how Twitter intends to grow its own position in the world of mobile advertising.)

      If accurate, the deal is a significant acquisition for Twitter, which has been sharpening its focus on revenue generation — specifically by running advertising across its platform in the form of promoted Tweets, ad retargeting services and more.

      A MoPub deal would help Twitter specifically in the area of mobile advertising, an area where Twitter appears to be doing quite well already. Last year, Twitter started to make more money out of advertising running on its mobile platform than it did on its desktop product, according to this report in the WSJ based on stats from eMarketer. Twitter declined to comment directly on this trend or how much this signifies in actual revenue.

    • No because all the bad news is PRICED IN..... Buy 5000 shares for $2000 and the most you can lose is $2000 but the upside is limitless!!!! I can sell 2500 shares at $0.80 and won't lose a penny after that. If they sell MoPub the stock doubles..... If they recoup any of the lost revs the stock doubles... If they announce a financing deal the stock doubles...... the only way you lose is if they announce bankruptcy.

    • Mobclix is another mobile exchange on the chopping block and could be the next to go. Buyers would get Mobclix at a discount as parent company Velti has struggled especially after writing down over $100 million in receivables due from clients hammered by operations in Cyprus and Greece. In its last quarterly report, the company noted it’s hired an investment bank to shop Mobclix to buyers. Venti’s mobile advertising revenue for the quarter was $8.9 million. “Mobclix is a dsitressed asset, a turnaround asset with undernourished tech,” says one ad tech executive.
      Nexage is another target, a mobile exchange with 300 publishers and 200 demand sources. Nexage launched its platform in 2011 and partnered early on with major apps like Angry Birds. The company announced in Jan. that it had increased revenue by 171% last year. Nexage raised $15 million last year from Hearst and return investors SingTel Innov8, Relay Ventures and GrandBanks Capital in a Series B round.
      Smaato, another mobile exchange with an international and application focus, claimed in July it had reached $110 million in annual run-rate. The company’s second biggest area of real-time bidding business is India, and it also has a strong presence in Europe through its Hamburg office.

      • 1 Reply to wall_st_knight_mare
      • inMobi: The Indian ad tech firm has a strong presence in China and a reported 25 offices worldwide. is an unlikely pickup given its high amount of funding, well over $200 million combined from Softbank and Kleiner Perkins Caufield and Byers. But one potential reason for that high amount of capital could be a high burn rate that would turn off a speculative buyer. Softbank noted in its last annual report a write-down of goodwill related to the ad tech firm.

        Millennial Media would be the most dramatic mobile acquisition because the most likely scenario for it to happen would be for a private equity firm to take the struggling public company private and then dress it up for a sale. But that scenario isn’t as far-fetched as you might think. Millennial Media’s stock has struggled for months and its stock didn’t fare any better after the company announced it would purchase competitor Jumptap for over $200 million last month. With a market cap a bit north of $500 million, the company would represent a bargain as its valuation has returned to about pre-deal levels, meaning flippers could pick up the company with Jumptap essentially as a throw-in.

        The field: Though much of the froth this summer and continuing into Sept. has been related to video- and mobile-facing ad tech firms, the next big purchase doesn’t have to come from that area. Rocket Fuel will be going public soon after filing with regulators a month ago. A source tells FORBES it could price as high as $900 million or $1 billion despite its first-half loss of $11.9 million off a run-rate of $92.6 million. That event could pour rocket fuel (sorry, I know) on exits this fall.
        Within the video space, BrightRoll is primed for an exit either way and there are a host of smaller players available at the right price. Among the multi-platform exchanges, Appnexus and OpenX are both primed for exits as well. The more easily purchased of the two would likely be OpenX, which has $75 million in the bank from five official fundi

    • Part of the typo filled FORBES article:
      --------------------------
      It’d also be foolish to discount Facebook, whose exchange playbook Twitter is following at least to some extent with this MoPub news, and Twitter itself, which could have more boxes to check off as it builds its case for potential new investors to buy into its advertising future when it does make its IPO move.

      Who would they buy? Here’s a short list of companies that could fall as the next dominoes:

      Mobclix is another mobile exchange on the chopping block and could be the next to go. Buyers would get Mobclix at a discount as parent company Velti has struggled especially after writing down over $100 million in receivables due from clients hammered by operations in Cyprus and Greece. In its last quarterly report, the company noted it’s hired an investment bank to shop Mobclix to buyers. Venti’s mobile advertising revenue for the quarter was $8.9 million. “Mobclix is a dsitressed asset, a turnaround asset with undernourished tech,” says one ad tech executive.

    • ...that is kind of an interesting theory...folks seeing the sale price and analogizing to Mobclix potential sale price...I dunno...I kind of think it may be the SelectCo investors consolidating voting rights...who knows, who cares, we're up...GLTA

      Sentiment: Hold

 
VELT
0.0626-0.0094(-13.06%)Dec 13 4:00 PMEST

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