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Digimarc Corporation Message Board

  • lottaluckeh lottaluckeh Dec 3, 2012 9:39 PM Flag

    Me thinks tomorrow will be a good day!

    Nice complimentary and strategic acquisition in a growing market and the extension of the stock repurchase program. Sounds like somebody was not happy with their current stock valuation and served up a nice catalyst. More pressure on all those trying to hold it down!

    Sentiment: Strong Buy

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    • Will be interesting to see the terms...just from the little info I can find about attributor it seems like a small deal...they seem to have pretty good talent...12 patents...good customer list....interesting monetization platform/model...I can definitely see the potential synergies combining dmrc technology and the attributor product/employees...definitely seems like a market that is growing rapidly...things that weren't so great is that attributor has raised over $25m and seems like they have struggled to make money although it is obviously still early (and they might be by now)...other thoughts this seems like a way for dmrc to translate combined solution to digital magazines to compliment print offerings...

      • 1 Reply to dtmccune3
      • Also seems like dmrc needed more operations guys on the discover solution side...and attributor needed a better patent moat to work with...

        The way they just announced a renewal of the stock repurchase and didn't add to it down here...and thinking about what this mgt team has said previously about m&a suggests to me that this is a cash deal that is accretive or will be accretive shortly...

        Without knowing the revs it's hard to guess...but with buyback, dividend, and need for dry powder I would think they would want to keep a decent amount of cash so deal is probably in the $15-30m range but could be higher...

        I guess I could see a stock sweetener to the deal, but with how tightly they have held the stock it doesn't seem to make much sense to include much stock in the deal with dmrc down under $20 bucks...only way it would make sense is if attributor has bigger revenues than I most likely

        This deal should help diversify revenues...increase presence in books etc...and add to 2nd wave of patents...

        Interesting to hear about specifics of Bruce's comments " we expect many strategic and financial benefits"

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