Acquisition of the assets of TVGuide.co.uk Limited
30/05/2022 07:00
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RNS Number : 1333N Digitalbox PLC 30 May 2022
30 May 2022
Digitalbox plc
("Digitalbox" or the "Company")
Acquisition of the assets of TVGuide.co.uk Limited
Digitalbox plc (AIM: DBOX), the mobile-first digital media business, which
owns Entertainment Daily, The Daily Mash and The Tab, is pleased to announce
it has exchanged contracts (the "Exchange") to acquire the web and mobile
platform assets of TVGuide.co.uk Limited (the "TVGuide Assets") for a total
cash consideration of £550,000 (the "Acquisition"). This includes services
required from TVGuide.co.uk Limited to be renamed Yo.tv Limited ("TVG"),
during the transitional period from the date of completion of the Acquisition.
The Acquisition will be immediately earnings enhancing when completed.
About TVGuide.co.uk
Launched in 2002, TVguide.co.uk is an established dedicated interactive UK TV
listings brand. It provides more than one million monthly users with detailed
episode guides, daily video previews, ratings, and recommendations of
everything worth watching on more than 300 channels. The website has expanded
to cover major streaming services, including Netflix, Amazon Prime Video, and
NOW TV.
Digitalbox will integrate TVguide.co.uk onto its Graphene technology platform,
which it has successfully deployed on The Daily Mash and The Tab as part of
their respective acquisitions and integrations. TVG founder Chetan Damani will
remain on a consultancy basis to ensure a smooth transition and editorial
operations will remain unchanged. Digitalbox already has a significant reach
among UK TV viewers through its TV and celebrity news brand Entertainment
Daily and will gain synergies from this complementary relationship.
The Acquisition
Completion is conditional upon the satisfactory upgrade, by TVG, of the
TVGuide.co.uk website as part of the platform redevelopment (the
"Completion"). The total consideration for the Acquisition to be paid is
£550,000, with £20,000 payable immediately on Exchange to trigger the
platform redevelopment, a further £350,000 payable on Completion - which is
anticipated to be within three to six months from the date of Exchange - and a
deferred payment of £180,000 paid four months from the Completion date, or
such later period as is agreed, for transitional services to be delivered in
connection with the TVGuide website.
The consideration will be funded from the Group's existing cash resources,
which at 24 May 2022 were approximately £2.8 million. The Acquisition is
being undertaken via Digitalbox Publishing Limited, which is wholly owned by
the Company.
According to TVG's unaudited management accounts for the financial year ended
31 December 2021, revenue and operating profit attributable to the TVGuide
Assets were approximately £0.49 million and £0.15 million, respectively. No
liabilities will be transferred to the Company under the Acquisition.
The Acquisition will be immediately earnings enhancing when completed.
James Carter, CEO, Digitalbox, said: "The acquisition of TVGuide.co.uk is
another excellent addition to our growing portfolio of digital assets. It is
an exciting business with considerable potential and an established brand.
Following the acquisitions of The Daily Mash and The Tab, we have an
established process of integrating assets onto our Graphene platform, and we
are confident we can quickly grow the site's revenue and increase its
profitability."
Chetan Demani, CEO, TV Guide, said: "We are pleased to be sending
TVGuide.co.uk to a great home. The site will complement the Digitalbox
portfolio and benefit from the Company's technology stack while enabling us to
focus our efforts in the Voice space. We wish them the best of luck with the
next stage of development for the brand."
END
Market abuse regulation: This announcement contains inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").
Enquiries:
Digitalbox c/o SEC Newgate
James Carter, CEO
Panmure Gordon Tel: 020 7886 2500
(Nominated Adviser, Financial Adviser & Joint Broker)
Alina Vaskina / James Sinclair-Ford (Corporate Advisory)
Rupert Dearden (Corporate Broking)
Alvarium Capital Partners (Joint Broker) Tel: 020 7195 1400
Alex Davies / Hugh Kingsmill Moore
SEC Newgate (Financial Communications) Tel: 07970 664807
Robin Tozer / Moly Gretton / Max Richardson digitalbox@secnewgate.co.uk
About Digitalbox plc
Based in Bath, UK, Digitalbox is a 'pure-play' digital media business with the
aim of profitable publishing at scale on mobile platforms.
Digitalbox operates three trading brands, "Entertainment Daily", "The Tab" and
"The Daily Mash". Entertainment Daily produces and publishes online UK
entertainment news covering TV, showbiz and celebrity news. The Daily Mash
produces and publishes satirical news content. The Tab is the UK's biggest
youth culture site fuelled by students.
Digitalbox generates revenue from the sale of advertising in and around the
content it publishes. The Group's optimisation for mobile enables it to
achieve revenues per session significantly ahead of market norms for
publishers on mobile.
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