Norwegian media conglomerate Schibsted ASA (OSE: SCH) surprised the markets with an all-cash offer for the shares of Swedish TV and music streaming services provider Aspiro AB(STO: ASP). Schibsted was already a major owner of Aspiro with nearly a 20% holding in the company. Currently the largest shareholder SEB Enskilda AS (STO: SEB A, SEB C)and other major owners Platekompaniet AS and Orkla ASA (OSE: ORK) have expressed that they are positive to the offer. These three companies together hold around 32.4% of the shares.
Aspiro offers TV and music streaming services to companies wanting to put their own branding on these services and also offers WiMP music service directly to consumers in selected markets. Aspiro’s net sales in 2010 were 185 million SEK and operating profit -114 million. The corresponding numbers for continuing operations were 159 million and -33 million as 2010 saw the divestments of former core-business area of ringtone vendorship as well as mobile games, images and graphics.
Aspiro has been making losses for quite some time but the balance sheet has is still fairly healthy. It has offices in Sweden, Denmark, Latvia and Estonia, employes around 120 people, and serves customers in over 20 countries worldwide. Schibsted sees Aspiro’s online offering and digital content welcome additions as the company is working on ways to monetize its digital media content.
The deal is subject to customary provisions and values the company at around 340 million SEK. Schibsted and Aspiro’s board feel that the company may grow better as a part of a larger unit. One aim would be to grow WiMP music service to rival Spotify. Aspiro is now trading close to the offer price up by some 32%. Schibsted, for which the deal is rather small in value, is also up by around 2%.
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