[hw_tw]

My view on the digital marketing company acquisition

The Uplers blog is talking about how Netflix and other OTT companies are using email marketing effectively…Incase Uplers has been working with these companies they would have let the readers know that they were the brains behind this and would have titled it as “How Uplers helped Netflix and other OTT companies”

However, Uplers might be working with these companies for different channel marketing activities like social media marketing…or these companies might have not allowed Uplers to use their name directly…so, we can’t completely rule out Uplers

The important take away from this article for me is that Netflix, Disney and other OTT companies does some serious deep thinking and get maximum ROI from these marketing activities…this means whichever company working behind the scenes with them would be having a noteworthy marketing team…we need to be happy that this company with strong marketing team is going to be part of BCG soon..:-)

[hw_tw]

In terms of the target company’ revenues and profits there are some speculations going around in MC forum and YT videos…at this stage it is better not to speculate any number and it’s better to look at it as a strategic investment wherein both companies are going to get benefited by each other in terms of things like

– Cross selling services to each other’s customers
– Get new customers with larger deal sizes
– Penetrate new regions
– Decrease costs and increase margins
– Decrease receivable days (hoping DM has lesser receivable days unlike ads business)
– Strengthen their product portfolio

It is important to note that the companies that were acquired before by BCG were small but has grown large over a period of time by working together and leveraging each other’s strengths

[myainvest]

Does anyone follow the way how price was suppressed today? For every buy orders, someone kept a sell order at lower prices – to make sure price doesn’t cross a certain limit. Normal investor would put the sell order at higher price, when price increases, to sell at a higher price. It was totally opposite here. It will only be possible by someone having a huge quantity of shares with them. Management should have to do something on this, else it is going to be a nuisance always. I thought these guys and their families were already dead due to Corona, really irritating to see them still lingering around in different ids – one id to delete messages always hbhullls and another to create panic basuragini. These guys cannot operate without someone holding huge quantity backing up!

[piedpiper]

Is it true that there is going to be an investor call tomorrow and they are going to reveal the name of the acquired company?

[hw_tw]

BCG need to inform the exchange, in case there is some progress on the acquisition.

Sometimes companies do media announcements and arrange discussions too…this happens once the deal is finalized and agreement signed by both parties… I have never heard of calling for a investor meet that too just to reveal the name.

I am assuming the next update would be post the deal closure and this can come anytime…might be before August 5th too…note that BCG is ready with funds and it’s waiting for the legal and financial clearance from EY team.

[VALUEBUYER001]

Radhuoptimist increase of shareholders in category of capital excess of 2 lakhs is not value or market rate of shares but nominal value or face value if means people holding more than ,1 Lac shares or capital 2 lacs

[chris]

Received an email regarding the videoconference tomorrow for the EGM 11:00 am

Attachments:

1. 

   AAC8BAFE-3415-46D3-AC23-3B1EBC23E03F.jpeg
   

[Raja]

Hi Chris, thanks buddy. Thought of buying few thousands tomorrow but will buy right away. Cheers

[hw_tw]

Voting window for Bonus share issuance, Funds raising items is open till 5PM today… request everyone to please participate without fail

[piedpiper]

How do we join EGM today?

[vgsatwork]

https://vcnow.webex.com/vcnow/onstage/g.php?t=a&d=1701900473

[Raja]

Hi vgs, if possible please give an update of the relevant info…if you are logged in and participating. Thanks

[hw_tw]

You can join through the same e-voting website…there will be link to join the live stream of the EGM

[akkithegrt]

can anybody throw some light on today’s EGM..!!

[pradeep]

EGM’s recording

[akkithegrt]

ok thanks

[myainvest]

EGM call gives me an impression that there are two acquisitions in pipeline. One is for the India based Digital Advertising company, to which LoI was given already. I guess Mr.Suresh didn’t answer Mr.Mayur’s query directly on what is the recent EBITA and revenue of the acquiring Indian company 🙂

And another one was for audio advertising company from US, which he mentioned is in discussion and currently in NY for the same. Debt Free, Bonus, PW shares lock-in period of 12 months – so no immediate increase of shares in market (someone please correct me if I’m wrong), One confirmed India based company (c.1200 employees) acquisition and another audio advertising company acquisition on cards! Future looks definitely good than what is used to look 5-6 years back and no point in discussing about company’s past repeatedly. I also believe we should always continue asking Mr.Suresh on bringing some big stable investors on table as well !! Else it will be difficult going forward when price increases and having few players holding big chunk can do much damage to share price in my view

[vgsatwork]

What stood out in today’s conference call is clearly the intent from the management- in terms of Action. There was no build up w.r.t communications about LOC/ audio company acquisition in the last month or so, but in today’s EGM, SKR mentioned that he is in newyork to for the acquisition & LOC discussion and he even mentioned that part of his agenda in NY is w.r.t consolidating subsidiaries and getting the consolidated entity listed in NY. So, we can expect a concrete update in the next couple of months. Market would keenly watch to see if there is follow through action from the management in a timely manner and accordingly would start re-rating the stock.

Also, he had hinted clearly that multifold increase in topline and bottom line through a combination of Acquisition and organic growth is very much possible and he is hinting about the same materializing in the next 18+ months.

Another key indicator is that he would be predominantly using cash (Generated from the acquired company) for upcoming acquisitions with a small stock component, indicating equity dilutions may not be much going forward. Digital Marketing Services company that is set to be acquired seems to have much better systems in place and they have addressed the scalability issues associated with back end support – These comments seems to suggest that Stand alone (parent) company along with the acquired company would be the key enabler for volume growth going forward.

Overall, the confidence in his tone and the optimism about the future of BCG was very evident in his tone. If the market sees ground level action, then I am sure it would start getting a good PE multiple.

[Raja]

Hi all,
Share trading ar 40, if we take bonus share into consideration, the average cost comes to 32.
Shares alloted to FPI is around the same price.
Looks even if operators still bring the price down, it is likely to spring back to cross the year high…
Anyone have a different view, pl share.
Beat wishes to all long term investors

[vgsatwork]

Market would wait to get clarity as to FPI’s preferential allotment shares would be eligible for bonus shares (given that ex-date is yet to be announced). If FPI’S get bonus shares, then their effective allotment price is 25.36, upto which the stock can potentially correct before finding support. If FPI’S are not eligible for bonus shares, then current price would be good support level. But, neither the market nor the investors know the ex-date and that is probably what is delaying support/reversal in stock price

[Author]

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