REG - Digitalbox PLC - Acquisition - Correction

DigitalboxAnnouncement

14/03/2025 09:30

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RNS Number : 7446A  Digitalbox PLC  14 March 2025

The following amendment has been made to the '(Acquisition of the assets of
Media Chain Group Limited)' announcement released on (14(th) March) at (7:00)
under RNS No 6393A.

 

(The Consideration will be funded from the Group's existing cash resources,
which at 31 December 2024 were approximately £2.1 million not 31 December
2025).

 

All other details remain unchanged.

 

The full amended text is shown below.

 

14(th) March 2025

Digitalbox plc

("Digitalbox", the "Company" or the "Group")

 

Acquisition of the assets of Media Chain Group Limited

Digitalbox plc (AIM: DBOX), the mobile-first digital media business, which
owns Entertainment Daily, The Daily Mash, The Tab, The Poke, TV Guide,
Emmerdale Insider, Royal Insider, and Reality Shrine is pleased to announce it
has exchanged contracts (the "Exchange") to acquire the digital assets of The
Life Network from Media Chain Group Limited for a total consideration of
£200,000 (the "Consideration", together the "Acquisition"). The Acquisition
is subject to completion of satisfactory testing by Digitalbox, as set out
below, and is expected to be earnings enhancing on completion.

 

About Media Chain Group Limited

 

Media Chain Group Limited was previously part of the broader Social Chain
business established in Manchester in 2014. Social Chain became part of The
Social Chain AG business in 2019 and operated in two divisions, an agency that
was sold in the spring of 2023 and the media division (Media Chain Group
Limited) that houses 20+ social pages with over 60m followers.

 

The Acquisition

 

The Acquisition provides Digitalbox with the opportunity to extend its
audience reach through The Life Network's 5.6m Facebook followers and 357k
Instagram followers. The assets made losses of £400 in 2024 after all
activity was paused on them in the middle of the year. The combined follower
base is expected to add almost 6m to the 21m currently owned by Digitalbox.

 

Completion of the Acquisition is conditional upon the satisfactory testing, by
Digitalbox, through a licence agreement which is in operation until mid-June
2025. The total Consideration for the Acquisition to be paid is £200,000,
with £20,000 payable immediately on Exchange as a non-refundable deposit to
trigger the license, and a further £180,000 conditionally payable on
completion - which is anticipated to be within three months from the date of
Exchange.

 

The Consideration will be funded from the Group's existing cash resources,
which at 31 December 2024 were approximately £2.1 million. The Acquisition
will be undertaken via Digitalbox Publishing Limited, which is wholly owned by
the Company.

 

The directors expect that the Acquisition will be earnings enhancing at the
point the Digitalbox management team chooses to advance to Completion.

 

James Carter, CEO, Digitalbox, said: "The opportunity to acquire some of the
Media Chain Group assets is an excellent way for us to extend the audiences
currently being served by the Digitalbox brands. With The Life Network
containing a significant female US audience footprint, we believe there are
plenty of synergies to build around our new site, Royal Insider, which is
already presenting traction in this market. The management team will get to
work straight away on proving this case before Completion."

 

Christian Grobel, CEO, Media Chain Group Limited, said: "We are pleased to be
offering these assets to a great home. The audience bases we have built will
complement the Digitalbox portfolio and benefit from the Company's talented
editorial teams. We wish them the best of luck with the next stage of
development for their brands."

 

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 Liberum (Nominated Adviser & Joint Broker)      Tel: 020 7886 2500
 James Sinclair-Ford
 Rupert Dearden

 Dougie McLeod

 Rauf Munir
                                                         Tel:  07786150915

 Leander Capital Partners (Joint Broker)
 Alex Davies

 SEC Newgate (Financial PR)                              Tel: 07540 106 366
 Robin Tozer / Molly Gretton                             digitalbox@secnewgate.co.uk

 

About Digitalbox plc

Based in the UK, Digitalbox is a 'pure-play' digital media business with the
aim of profitable publishing at scale on mobile platforms.

Digitalbox operates the following trading brands, "Entertainment Daily", "The
Daily Mash", "The Tab", "The Poke", "TV Guide", "Emmerdale Insider", "Royal
Insider" and "Reality Shrine", 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. The Poke expertly curates and
editorialises the funniest content from around the web and social media. TV
Guide serves as the definitive guide to what is on TV. Emmerdale Insider
charts the twists and turns of this ever present British soap staple. Royal
Insider provides the latest information for royal family fans the world over.
Reality Shrine documents the latest twists and turns from the world's biggest
reality TV shows.

Digitalbox primarily 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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