Digitalbox PLC Acquisition of assets from Social Chain AG (8140H)
August 01 2023 - 1:00AM
UK Regulatory
TIDMDBOX
RNS Number : 8140H
Digitalbox PLC
01 August 2023
1 August 2023
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,
and The Poke is pleased to announce it has exchanged contracts (the
"Exchange") to acquire the digital assets of 99 Problems, Student
Problems and The Life Network Shopping from Media Chain Group
Limited (part of "Social Chain AG") for a total consideration of
$800,000 (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 immediately
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 transaction provides Digitalbox with the opportunity to
extend its audience reach through the 99 Problems 10m Facebook
followers, Student Problems 1.4m Tik Tok followers and the The Life
Shopping Network 1m Facebook followers. The combined follower bases
will more than double the number currently owned by Digitalbox at
approximately 8m Facebook followers.
Completion of the Acquisition is conditional upon the
satisfactory testing, by Digitalbox, through a licence agreement
which is in operation until the end of November 2023. The total
Consideration for the Acquisition to be paid is $800,000, with
$79,000 payable immediately on Exchange as a non-refundable deposit
to trigger the license term through a single $1,000 fee, and a
further $720,000 payable on completion - which is anticipated to be
within two to five months from the date of Exchange - through a
deferred payment of $520,000 in cash and $200,000 in Digitalbox
ordinary shares ("Completion").
The Consideration will be funded from the Group's existing cash
resources, which at 28 July 2023 were approximately GBP2.4 million.
The Acquisition is being undertaken via Digitalbox Publishing
Limited, which is wholly owned by the Company.
The Acquisition is expected to be immediately earnings enhancing
at the point the Digitalbox management team choose 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
explore significantly extending the audiences currently being
served by the Digitalbox brands. With 99 Problems having started
life as a social page called Student Problems, we believe there are
plenty of synergies to build around The Tab whilst there is very
strong common ground between Entertainment Daily's audience and
those who follow The Life Shopping Network. 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 departments. 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 Gordon Tel: 020 7886 2500
(Nominated Adviser, Financial Adviser
& Joint Broker )
James Sinclair-Ford (Corporate Advisory)
Rupert Dearden (Corporate Broking)
Leander Capital Partners (Joint Broker) Tel: 020 7195 1400
Alex Davies / Hugh Kingsmill Moore
SEC Newgate (Financial Communications) Tel: 07970 664807
Robin Tozer / Moly 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 trading brands of "Entertainment Daily",
"The Daily Mash", "The Tab", and "The Poke".
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.
Digitalbox primarily generates revenue from the sale of
advertising in and around the content it publishes. The Company's
optimisation for mobile enables it to achieve revenues per session
significantly ahead of market norms for publishers on mobile.
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END
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