Autobytel Confusing On Multiple Levels
Oct. 1, 2015, 6:45 PM
- Autobytel (NASDAQ:ABTL) has acquired AutoWeb, owner of an search engine/marketplace linking car buyers with dealers/OEMs, and monetized on a pay-per-click basis. AutoWeb CEO Matias de Tezanos is joining the board, as is AutoWeb president Jose Vargas and director Robert Mylod.
- Autobytel, which previously owned 15% of AutoWeb, is issuing 170K series B junior convertible preferred shares, and warrants for 150K series B preferred shares. Each series B preferred share is convertible into 10 shares of common stock. The warrants have an exercise price of $184.47, and become exercisable 3 years after issuance "in three tranches based on the performance of the closing price of the company common stock during the term of the warrants."
- The company asserts AutoWeb's provides "a sophisticated analytics platform with data methodologies that provide insights into consumer shopping and purchasing behavior" and a "world-class technology development team with proven expertise in the clicks and display ad marketplaces," and "further expands Autobytel's suite of dealer offerings, including TextShield, SaleMove and GoMoto."
- Autobytel now expects Q3 revenue of $39M, above a $37.6M consensus. With AutoWeb on the books, 2015 revenue has been hiked to $132M-$134M from a prior $128M-$132M. EPS guidance has been cut to $1.17-$1.23 from $1.21-$1.27 due to the dilution produced by the acquisition. AutoWeb is expected to be accretive to EPS in 2016.
Oct. 21, 2014, 1:29 PM
- Ancora Advisors has disclosed a 428K-share (4.7%) stake in Autobytel (NASDAQ:ABTL), and has called on its board to "immediately explore the sale of the Company."
- Ancora observes Autobytel trades at a far lower valuation than larger rival TrueCar, and argues its relative lack of scale puts it at a major disadvantage. The firm also declares Autobytel's management lacks credibility, and criticizes a governance structure deemed to disenfranchise shareholders.
- With a current market cap of $79M, Autobytel should be easy for a larger player to digest, provided one is interested.
Jan. 13, 2014, 6:37 PM
- Autobytel (ABTL) +12.3% AH after agreeing to acquire AutoNation (AN) subsidiary AutoUSA for $10M in cash and a $1M 6% convertible note payable in one lump sum in five years and convertible to ABTL common stock at a conversion price reflecting a 20% premium over the price of ABTL shares on the date of closing.
- ABTL says the acquisition expands its reach and influence in the industry by increasing its national new and used car dealer network to more than 5,200 from ~3,800 while boosting its business with auto manufacturers.
- ABTL expects the deal will be accretive to its 2014 results.