Revenues of Actua will jump from 140 to 180 million with only less than 30 million investitions, if Acutua would buy Local Corp as fifth platform
Actua needs only less $20 million to pay back the debts of Local Corp (or overtake the debts) and could for example additional offer for 40 shares of Local Corp one share of Actua, which would by 23.4 million outstanding shares of Local Corp the number of shares of Actua only increase from 40.8 million to 41.4 Million a very small dilution.
The $17 million for the pay-back of debts can Actua refinance through a sale of not needed assets and/or licensing the 14 valuable patents of Local Corp.
Local Corp did a lot of right steps not fast enough - but Local Corp is very atractive for an take-over: Transforming the business and entering rapidly growing digital ad markets by leveraging Local Corp's premium audience
OLD BUSINESS MODEL of Local Corp:
- Opportunistic short term focus
- High revenue concentration risk
- Limited innovation
- Focus on complex SMB market
NEW BUSINESS MODEL of Local Corp:
- Long term value creation; bottom-line driven
- Diverse revenue streams
- Rapid lean production interation and innovation
- Differentiated value propositions
- Shift to enterprise advertisers
" Local Corp have created a huge opportunity in two areas. One is in programmatic, the other is in mobile search.
We came up with a set of initiatives that we’ve been executing that allow us to leverage the traffic and data we collect about consumers and consumer intentions through our search business, and leverage that programmatically. We’re well on the way to building a programmatic platform. On the mobile side, we wanted to provide a solution for search for mobile phone users that was different than what the Google/Yahoo traditional browser vendors were doing."
Local Corp CEO Fred Thiel, Tuesday, May 05, 2015 (Street Fight Magazine)
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