Digitalbox Acquires Media Chain Group's Digital Assets
Why we think this is good
The acquisition of Media Chain Group's digital assets is a positive development for Digitalbox. While the acquired assets were loss-making in 2024, the combined follower base of 6 million is expected to significantly expand Digitalbox's audience reach, which could lead to increased revenue and earnings. The acquisition is being funded from Digitalbox's existing cash resources, reducing funding risk. Overall, the transaction appears to be a strategic move that could enhance Digitalbox's market position and financial performance.
Key Points
- Digitalbox acquires digital assets of The Life Network from Media Chain Group Limited
- Total consideration of £200,000
- Acquisition expected to be earnings enhancing
- Expands Digitalbox's audience reach by nearly 6 million followers
- Funded from Digitalbox's existing cash resources of £2.1 million
Summary
Digitalbox plc has exchanged contracts to acquire the digital assets of The Life Network from Media Chain Group Limited for a total consideration of £200,000. The acquisition is expected to be earnings enhancing on completion and will provide Digitalbox with the opportunity to extend its audience reach through The Life Network's 5.6 million Facebook followers and 357,000 Instagram followers. The combined follower base is expected to add almost 6 million to the 21 million currently owned by Digitalbox. The acquisition will be funded from the Group's existing cash resources of approximately £2.1 million.