Company Profile

YooMedia plc is one of the fastest growing interactive entertainment companies in the UK.
Since 1997 we have been developing and launching leading B2C consumer brands in the gaming and community sectors. We also work in a B2B capacity with leading brand owners, agencies, content developers and broadcasters to design and develop their interactive content strategies.

Led by Executive Chairman Dr. Michael Sinclair and Group Managing Director Neil MacDonald, YooMedia has assembled a highly experienced management team that possesses a unique blend of skills and experience in the areas of Digital TV, Internet and mobile phone services and technology.

With main office locations in London, Exeter and Maidstone, YooMedia manages core assets including:

Over 30 office locations throughout the UK alone

State-of-the-art studio, production and post-production facilities at our Wapping location.

UK broadcast return path & bandwidth owner

Fully fledged UK Bookmaker License

Database with over 350K UK singles

SMS Engine access with international reach

Fully staffed 50 seat Customer Contact Centre in Maidstone, Kent

YooMedia Dating & Chat - Our dating subsidiary company manages the oldest and largest UK-owned dating brands including Dateline, Club Sirius and Avenues. YooMedia Dating has over 20 office locations throughout the UK and also manages YooChat, our world-leading interactive chat service found on UK digital cable on the Telewest platform (platform extensions planned for 2005).

YooMedia Gambling & Games - Combining the brands of Avago and Channel 425 (in partnership with William Hill) YooMedia is on the leading-edge of interactive fixed odds, casino and poker gambling services for digital TV, the web and 3G mobile phones. Our gaming business also manages YooPlay, the only interactive just for fun games channel found on all four Digital TV platforms in the United Kingdom.

YooMedia Enhanced Solutions (YES) - YES works with brand owners, agencies, content owners and broadcasters to clarify the options, define the strategies and deliver the interactive content that enhances consumer and audience experiences. YES customers include the BBC, Nestle, Celador, William Hill, Channel 4, ZipTV, The Cartoon Network and HR Owen.

mac

Again, a very interesting post - thanks. How do you read the European market for YOO? At the moment, YOO management must have their hands full though they are pretty large hands. But, if the potential is there, they must be doing the planning, perhaps on the back of trading relationships. The related question is whether there is competitive threat from France, etc.

Market extremely quiet. However, it would seem likely that the dtv figures get some publicity and comment is likely to rise as the impact of dtv on Xmas trade becomes more apparent.

Eric

I can forsee Yoomedia expanding into European markets, but not in the next two years, simply far to much money to be made in the U.K. and the directors will need to stay fully focused, in order to deliver the significant potential of our products.

Mr Docherty stated last week, how he intends to deliver our own specialised, linear television channels and how in 12 months, mobile will be a huge part of the business. In effect, he is preparing to take the business to another level. The raft of new television channels, Mr Docherty is planning, may require additional funding. The best way to achieve this, is by attracting outside investors, who provide ALL the required capital. In return, the new investors will receive say 50% of the very substantial profits, which would surely arrive, a new division could be formed, with the outside investors owning 50% of the equity. YooTelevision is as good a name as any.

A WIN, WIN, for shareholders. No dilution for the existing stakeholders, but with a 50% share of the profits from the new division. The outside investors are happy, the shareholders do not suffer any diulution, yet benefit from owning a 50% stake in a GOLDMINE! I.M.H.O.

Once this business plan is driven through, delivered and executed with 5m+ profits on the table, then we can talk about European expansion. However, a takeover may mean, this particular stage of our evolution, is never reached.

Eric do you think ASC will hit a pound before Xmas? looks to be heading that way.

mac

Firstly, re ASC. There was a debate two or three months back as to timing of the share hitting 1; the broker forecast. General conclusion was that it would need the results from the Xmas season. I have just commented on that bb to encourage an investor to hold, or better accumulate and given the reasons. Briefly, the viewpoint is: price rising at 5% per day at present just to service the buying volume and enable the MMs to keep an equivalent sales volume to balance their books; results on November 29th are certain to be excellent as 5 months trading was 85% up; there should also be initial indication of seasonal trading - Xmas is almost bound to be dramatic with additional buyers on stream and huge publicity. 1 seems likely during Novemebr and the price could move a lot further by Xmas. I think more people are learning lessons to run profits. There are only 68m shares and there is likely to be huge demand.

I think this is a good example of what could happen to YOO next year once trading results start to come in. One very interesting factor from your post above is that funding will be needed for the major expansion into linear TV channels (still don't really understand it!). I'm not sure about the comment re all new inveestment funds. YOO was at 55p earlier this year. If sales of 40m are clearly in sight with dramatic effect on profit, pe and peg, you could see cap. going to 100m which would be share price of 80p. I don't suppose there is any indication of amount of capital required but it may be that the dilution need not be that great. An argument for this route would seem to be the need for existing technotogy, such as Trigger and Whoosh as part of the building blocks of the new facilities.

Finally, to link the two streams of thought. With ASC, you have the share of the year for 2004. Its not too late to take a heavyweight position to build up cap. value of one's personal portfolio. YOO may not be quite as dramatic next year because it starts from a higher base. What I do see as potentially very attractive is that the real run in the YOO price may not occur until the ASC price is getting over-heated, say early next year, and funds can be shifted to establish a heavyweight position in YOO (personally, I will probably link that to AZM as the timing may be similar). Hey, this is great fun this investing lark!

Eric

Nokia backs DTV
The proposition for selling digital TV services on mobile phones is suddenly looking more serious.

The world's leading mobile phone maker, Nokia, is endorsing digital TV on its next generation of mobile phones. It is also conducting international trials of the service with mobile phones in Europe and the US. And its initial findings show that users are willing to pay to watch TV on their handsets.

Nokia's general manager of Multimedia, Anssi Vanjoki, told the Nokia Mobility Conference in Monaco to expect Nokia phones incorporating digital TV receivers by 2006. The most advanced current model still uses a separate TV card to enable television viewing on the mobile phone.

Nokia reports that trials in Germany have revealed that consumers there are willing to pay at least 13 a month to watch TV programmes on their mobile phones. The trials enabled them to watch TV for 3-15 minutes a day on their handsets.

Lovelacemedia | 05.11.2004
Search news:

Er - where's my parachute! Down again today - sometimes I really hate Shares Mag tips! Though I am holding for the longer term! Bah!!!!

Poverty

I suspect the MMs see the tips before we do and just mark the price up, take our dosh; flush out the sellers; take their dosh. Then they wait awhile before moving the price down; flush out some buyers; take their dosh; raise the price but not that much; flush out the sellers; take their dosh; laugh all the way to the bank! Easy job really and we all fall for it!

Yes, YOO is a medium term buy. Seems quite likely that it will get publicity whilst people are interested in digital TV coming up to Xmas. There's never very long beteen good announcements from the company. I'll probably let my 10% of portfolio holding run until the New Year and then start to build up towards the finals, perhaps by a CFD. At least that's only 4 months to wait. OK, if you're getting excitment elsewhere!

Eric

It's my fault, bought on 20/10 and the flags go up and sp down!!
Bought as didn't think would fall back below 25p but when I have some spare cash again will consider buying some more.
The title of BB is apt, share for the future and now should be the time to buy.
I havn't seen anything so well updated, thanks Mactavish, at least it keeps me focussed on why I bought these rather than panicking at the current sp.

what the *** is going on here?

Yoomedia PLC
10 November 2004

YooMedia Plc ('the Company')



Potential Acquisitions



The Company has become aware that its potential acquisition of the whole of the
issued share capital of Digital Interactive Television Group Limited and The
Gaming Channel Limited (together the 'Acquisitions') has become known to more
than a limited number of people.



The Acquisitions would, if completed, be classified as a reverse takeover under
the AIM Rules and therefore the Company has requested that trading in its
ordinary shares be suspended temporarily. It is emphasised that the Acquisitions
remain conditional, inter alia, on completion of appropriate financing and the
approval of shareholders.

A further announcement will be made as soon as practicable.

For further information please contact:



Powerscourt 020 7236 5615
John Murray



10 November 2004


This information is provided by RNS
The company news service from the London Stock Exchange

Gaming Channel owns Avago TV 18/09/2003



The Gaming Channel is a privately funded company whose shareholders include Peter Wilkinson, business entrepreneur and Freeserve founder, and John Swingewood, former director of new media at BSkyB..

Avago will now operate as a subsidiary of The Gaming Channel, which plans to extend the popular service to both internet and mobile applications, as well as develop further interactive TV channels.

Avago was launched on Sky Digital in July last year and has since attracted more than 100,000 (according to their own figures) Sky viewers and developed an annual turnover of 30m. Up until 1 September, the channel was operated by the Digital Interactive Television Group (DTIG), on behalf of The Gaming Channel, which has been a shell company for the past year.

However, as of 1 September, all the day-to-day operations of Avago, along with its 30 staff, have been transferred to The Gaming Channel. In addition to operating its own services, The Gaming Channel plans to provide white label gambling services to third parties, via iTV, the internet and mobile.

These will be targeted at both existing gaming companies who require a genuine interactive television presence, as well as non-gaming brands that wish to generate additional revenues via this new medium. The company said an announcement regarding the first of these agreements would be made in the near future.

The Gaming Channel is headed by Damian Cope who co-founded the UK's first internet betting service, Blue Square. He has also worked at Hilton Group where he helped to develop Ladbrokes.com into a leading multi-lingual gambling portal, and most recently The Rank Group where he set up its interactive gaming division.

This included the launch of the UK's first fixed odds games site, Rank.com, the online casino HardRockCasino.com and the interactive television joint venture with NDS Group, Fancy a Flutter.

mac

Thanks for the speed of your posts. Looking at the trading for the day, generally buying in relatively small trades: small investors taking advantage of the falling price, probably. Then three sizeable sells at 11:20 totalling 150,000 shares; well, not that large as it is 'only' 35K in total. Then spasmodic buys. How do you read the RNS? A reverse takeover implies that they are trying to swallow something larger than themselves, I believe. It would appear that YOO are trying to line up finance, presumably to avoid too great a dilution of existing shares. Is this positive or negative? Assuming it comes off, it could well be that they are buying positive cash flow and profits and thus improving the profit per share and pe. Is this how you read it?

Eric

yes a reverse is because YOO are looking to take over companies bigger than itself.
Although it may be a great deal you can not predict what the share price will do.
I hope it shoots up but I assume they may be paying for some or all of the deal with shares and bringing on board new directors.

mac

The RNS does refer to appropriate financing - it would hardly be appropriate if all the deal was shares and they lost control. Why would YOO do the deal? to buy the revenue stream and because of synergy with their own gaming operation. You will probably agree that the main driving force for YOO is technology leadership in the digital TV market place, so this may be big but in way it is incidental. I suspect it is an offer that they can't refuse. Why should the seller's sell? do they see that they will lose out because YOO have superior technology (e.g. access to all platforms) and that they will progressively lose market share? Do they want to be part of a much bigger success story? In particular, do they see the multiples ahead for the YOO share price? These implications seem to stack up? Do you have an alternative reading? This is not to say what reaction there will be in the market.

Eric

I think you have probably got it right Eric, i was just being on the cautious side, we will jus thave to wait and how the market will react.

Hang on tight! I reckon and hope it dosen't get too bumpy! Yoo are piling on the acquisitions this year - they won't have much pocket money left - hope it isn't based on a rights issue...

Don't say I never provide a service.

http://www.tvgg.tv/

Here is the daddy!

Part of the The Gaming Channel, so it's not just AVAGO!

http://www.isports.tv/

AVAGO have a turnover of at least 30m and that was last year.

Hence the term, 'reverse takeover'.

http://www.thegoodgamblingguide.co.uk/news/2003/g eneral/gamingchannel.htm

http://www.casino.co.uk/news/?id=387&st=11

Further to Eric's comments earlier.

A POSSIBLE ALTERNATIVE TO DILUTION.


"It is emphasised that the Acquisitions remain conditional, inter alia, on completion of appropriate financing and the approval of shareholders"

Is the term 'financing' indicative of a raising of capital, other than extra shares?

The new investors may be given a stake in a newly formed divison, say 50% in return for half the profits. We own the other half of the new division. A win, win situation for shareholders, with no dilution.

Rather like the Jiles management, who own 25% of the equity in Yoodating. The Jiles mangement were happy to swap their ownership of Jiles, for a 25% stake in Yoodating, with no further diulution for shareholders.

This represents my prefered solution.