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.

So any idea on the possible opening price yet ?

Batteryman

That is a difficult call! First, it obviously depends on the shape of the deal: it clearly will be a mix of shares and loan capital, quite possibly with delayed conversion rights. The key point is that this will give gearing to existing shares and, quite apart from the bullish nature of the venture, considerations of cap. value implies a reasonably significant jump in price. Second, the opening price is the call of the MMs. I tend to try to read their minds as reasonable people - in contrast to the sinister and perverted tendencies ascribed to them by many! But they are in a risk situation. If they call the opening too low and get a buying spree, they are having to sell stock they haven't got, then jumping the price up until they manage to flush out sellers. In earlier posts, we were tending to look for a price around 35p. But the MM argument could put it higher.

Just for fun, here is a blue sky perspective. Suppose the value of the acquisition is clearly nearer to 100M than 50M; with existing YOO, put a value of 100M. Suppose the shares total becomes 250M. Then that is a price of 40p. Perhaps that is just the sort of fag-packet calculation that the MMs do - they must go through a lot of packets of fags! 40p wouldn't stop the buyers but it would bring in some profit-takers (not me!). There would still be a volume of buying with the price rising but not out of control (from the MM perspective). So there's my bet - 40p. Any other punters?

Eric

you are on your own , too complex for me., but as alweays your logic sounds good. Gut feeling says they wouldnt open much higher and would be cautious. So although not very analytical I would have expected an opening price similar to pre suspension , perhaps a couple of pence up....but i much prefer your analysis!

If the deal comes off okay and all parties are happy I don't think YOO will be happy with still having penny shares - at 23p - when I think their aim is to build a large company asap - with a more serious sp - maybe a couple of quid. We still don't knoiw the ramifications of the deal and what the new capital structure will be. Gearing won't be a problem as the revenue expectations and actual are very good.

This is not to say I expect the sp to open at such a high figure but that must be where YOO are aiming over the next 12-18 months. Nice if they can come back off suspension before the Xmas rush into new digital and thus benefit from pre Xmas stockmarket expectations. Good luck to us all!

What the opening price and what the price is at, say, 08:30 are two very differeent questions. It could be that the MMs open at not that far above the current price and then ramp it up very quickly in response to a spate of buying. The problem with that approach is that existing holders, you would think, would want to see what is happening before they sell. An exception might be with any sell orders held by brokers from holders to have to realise their funds 'at best'; even then, you can't see the broker rushing in at 08:01 before he has had his first cup of coffee. I've noticed that you sometimes have a few minutes to do some trading before an onslaught starts! There may just be a very good buying opportunity if one is bright and early. Can anyone think of a parallel case?

Eric

Dealers speculated that trading in Yoomedia shares will be resumed shortly. The talk was that the group, which had dealings suspended at 23p earlier this month, had raised 25m through a placing of stock at 15p via brokers Evolution.



Market Report - Torygraph 25/11

thats silenced the crowd!

Ajohngtudor Am i missing the point , isnt a lot of stock issued at 15P going to dilute the share price somewhat?Did it nee to be that cheap!Are we looking at a relaunch price sub 20P now?Or am i reading this wrong?

willfag: Well there are a number of assumptions to consider in answering your points, namely: 1. Is the report accurate (In my view the DT reports are normally spot on). 2. So why issue stock at such a low price (normally price fixed lower to gain financing if investor/s believe the risk needs the premium over current SP). 3. If that is the case then YES, the SP will open lower certainly below 20p, but depending on the detail may move higher...but I would want to see how the market reacts to this when the share relists. Hope that helps, and hence my post to this informative BB. John

thanks John. cant say my initial reaction to the YOO news is positive. have you noticed how often companies report fantastic "deals" that send the price into reverse sometimes for long periods. PXC,AMU,ERT are some that spriong to mind, which seem really good companies, done all the right things but lift off never happened.

wiifagg: In one word, YES! In fact I have to declare my hand and tell you that I myself was involved in a number of small company acquistions at one time, all with the view of growing the larger animal...and invariably it is very hard to grow shareholder value as an immediate result of the acquistion. Immediately after the deal, it takes an awful lot of effort to realise the Business Plan that prompted the deal, and during that time it is fair to say the shareholder value suffers. So in this case we will have to see the details before reaching any conclusions. But I would suggest that if you are an active dealer you would not plan to keep YOO in your protfolio, longer term is a different matter. John

Brilliant! I bought at 26p about a month ago! I just love wasting money...

A few days ago, some of us were speculating on a takeout price of at least 50m, with the possibility of a further 300m new shares + other financing, which would have incurred interest charges, out of valuable profits.

So 165 new shares, raising 25m, could be good news, if it pays for DITG, with no further financing.

5m 2005 post tax profit / 330m shares in issue = 2005 EPS of 1.5p.

PE of 30 = SP of 45p.

3.2m 2005 post tax profit / 330m shares = 2005 EPS of 0.96p

PE of 30 = SP of 29p.

iPublic: Agreed, as I said we need to see the details before rushing to any conclusions.

Poverty: I too hold YOO stock, so again, we should not rush to any conclusions...yet! By the way I do hope your choice of the mnemonic POVERTY is not apt, but instead is soon to be replaced as RICH!

John

If the telegraph report is true and the 25m will pay for DITG then.........

330M shares in issue * 23p = new market cap of 76m.

Well considering the prospects of the enlarged group, bearing in mind the assured 2005 profits, is 76m to low???

166.5m shares * 15p = 25m

Currently 165m shares in issue. 165m shares * 23p = .current market cap 38m.

Total shares assuming Telegraph report is correct: 331.5m

23p = market cap 76.25m.

Hardly highly rated or expensive, considering 2005 profits of at least 3m.

So if the Telegraph report is true, everything is rosy, providing the 25m pays for DITG, with no other financing element. Assuming this is correct, I will be more than happy to buy more at 23p, as the 76.25m market cap is peanuts, compared to the potential.

iPublic: Nothing to add to your calculations at this stage. We really need to see the RNS, which I am sure will be posted fairly soon now. John

Yes John.

Of course, an additional 15m to 20m loan, might well still shaft us. We shall see.

I will keep my pecker up as they say! ...and hopefully I can change my moniker!

Sloan stock would make senseitting down to relax after a hard day's decorating with a nice glass of wine. Interesting posts. It hardly seems to make sense to pay for this acquisition fully by the sale of shares. One argument is that some institutional shareholders and Sony would not want to see their shareholdings diluted. I suspect a rights issue would be too slow. But surely the target companies would want to remain involved and would be looking for a mix of shares and cash. If that is the case, why not raise the funds by conversion loan stock? Now, to raise 25m by a mix of shares and loan stock would make sense. I just don't believe the report as stated.

On the discussion of potential price movements after announcement, I for one had been assuming that the RNS would be posted first thing. Earthport posted a very significant announcement yesterday in the early afternoon, presumably because there was no advantage in waiting for the next day.

They say patience is a virtue - I seem to have ben endowed with all the vices!

Eric