XLMedia shares soar
XLMedia is a leading digital media company who are in the process of offloading some of their gaming assets to gambling.com Group Ltd, including a fixed-sum amount of $37.5m of which some may be released to shareholders. The remainder is likely to be reinvested in US gaming and sports marketing as well as US gaming websites. This has led to a sharp increase in the XLMedia share price which surged some 54% to 9.60 pence in London on Thursday morning (21st March 2024). This price climb continued throughout the day and finished at 12.65 when the markets closed, an increase of 102.40%.
Assets in demand
Owners of Freebets.com, XLMedia are a London-based concern and while they are currently in the process of offloading some of their assets, they have made it clear that they aren’t in the process of being bought in full. They have stated that they have discussed the possibility of an all-out sale of the whole company with potential investors but while some of their assets were in demand, a sale of the company was very unlikely given the prevailing share price.
Regarding a potential sale, XLMedia said: “The board confirms it had been in discussions with potential acquirors regarding the possibility of a sale of the whole company, but while it was clear there was a demand for the assets, given the prevailing share price, a sale of the whole company was unlikely to create the most value for shareholders.”
Regarding their future plans, the company said: “The near-term focus will be to continue to drive organic revenue growth while improving margins and generating revenues. The group does not have any current plans for acquisition in North America.”
North America Sports
Estimated by Cavendish to be worth an estimated £48m, the company established a North America Sports market presence three years ago and since then they have focused mainly towards this market, as opposed to a Europe Gaming-led concern. Around 65% of the company’s revenue came from North America Sports in 2022.
