A US movie studio looks set to acquire control of Israeli company Vonetize (TASE: VNTZ), which provides digital video content on demand for smart devices and televisions, at a company value of $50 million.
The company notified the Tel Aviv Stock Exchange (TASE) today that CEO Noam Josephides (29%), CTO Oren Levy (10.2%) and director Dean Salomon (13.5%) have received an offer, and a signed, binding memorandum of principles from a Los Angeles based movie studio to buy control of the company from them, and in the future to buy full control.
The US company is committed to buying the first 10% of the company for $1.41 per share (NIS 4.90 - 490% higher than the share price at opening of trade this morning) and reflecting a company valuation of $50 million.
In the second stage, within a year of signing the binding agreement, the aforementioned controlling shareholders will sell their full stakes to the US studio for its market value, and no more than $2 billion. The new owners will continue to employ Josephides and Levy for at least three years.
Vonetize, which held its IPO on the TASE 18 months ago, saw its share price rise 92% in afternoon trading on the TASE.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018