Author Topic: LSYN - Liberated Syndication  (Read 4023 times)

knight933

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Re: LSYN - Liberated Syndication
« Reply #20 on: February 13, 2018, 10:56:31 AM »
*NEW M&A* deal today implies the private market value of LSYN is very likely much higher than the current stock price.

Triton was sold for $185M or ~13.2x 2017 EBITDA (EBITDA was $10.5M for 9months of 2017; annualize that gets you to $14M for full year). Compare this to the pro-forma LSYN/Pair Networks which I believe trades at 6.0x 2017 EBITDA (assuming $1.46 stock price, no NOL's, no synergies). I think this is a relevant comp because these are similar businesses in terms of operations, scale, and margins (Triton EBITDA Margins ~35% vs. PF LSYN/Pair ~32%, all $ trailing, with no synergies). If LSYN traded at Triton’s trailing multiple, that would mean an Enterprise Value +121% higher than today. (Yes, stock return would be lower, after factoring in some dilution for mgmt. comp, but you get the point).

Background: It was announced this morning on the London Stock Exchange, Audioboom (BOOM.L) will be buying Triton Digital, through a reverse takeover, for US$185 million. While not exactly the same business, Audioboom is probably the only other publicly traded podcasting hosting/services company out there.

From the Press Release:

Link here: https://audioboomplc.com/wp-content/uploads/2016/04/Statement-re-Potential-Acquisition-and-Suspension-of-Trading-on-AIM-announcement-FINAL.pdf

“Launched in 2006 ….the Directors believe Triton to be one of the largest technology and service providers to the online audio industry. Triton’s offering represents a broad suite of audio technology services and tools that support over-the-air, online and on-demand audio publishers.”

"Triton’s software as a service based offering includes three main product lines: 1) Audience measurement, 2) streaming platform and services and 3) audience engagement." (Sounds very similar to Liberated)

Bottom line: There is a large private-market disconnect with the public price for LSYN, which I expect will close over time when others figure out that this is a real, growing business and they establish some much-needed credibility. I am still trying to learn more about management - I never said this was not a legitimate concern. However, I will admit I am a little less worried about the choice of auditor right now, given this was a TINY company a few years ago, and by most measures, still is a tiny company, so I don't expect everyone to use E&Y. I appreciate everyone's contribution to the message board. Will continue to monitor this as it proceeds, but I think it is hard to lose at $1.50. Obviously others are free to disagree.   


Og

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Re: LSYN - Liberated Syndication
« Reply #21 on: April 05, 2018, 11:53:15 AM »
Was anyone from here on the call today?