Quick Summary
Our favourite AIM listed company this week announced a “Strategic Review” to “evaluate opportunities to to maximise value for the company’s shareholders”. We make some wild speculations on what could happen. Link to announcement
Background
XL Media is a network of companies that operates affiliate marketing through various channels, an affiliate network and media buying services. Growth has been fantastic and they are clearly very good at what they do. Link to corporate presentation
What Could Happen to XL Media Next?
Obvious option is they just continue their strategy of smart bolt on acquisitions of media assets (which they have a track record in completing successfully). We can think of a shortlist of 5 potential targets that would provide attractive growth.
A software supplier / network owner such as Playtech could be interested in XL Media. The acquisition would provide a value add service to existing customers.
Acquisition by an operator as way to lock down acquisition traffic also makes sense, however we prefer the theory that XL Media could buy an operator and create better value chain control. There is a wide range of such potential targets.
If we look outside the industry, one of the large agency groups such as WPP, Havas or Omnicom could also be interested in XL Media, allows easy access to an entire business category and fits with their current model of growth through acquisitions.
Disclaimers
We have no shares or inside knowledge, all of the above is pure speculation.
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Favourite Start-Ups at iCE Next Week
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- StreamData – I don’t understand it but our tech nerds are excited
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