Autobytel Confusing On Multiple Levels
Autobytel Is A Takeover Target In A Consolidating Industry
Dr. Hugh Akston • 14 Comments
Dr. Hugh Akston • 14 Comments
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.
Autobytel, Inc. is a automotive marketing services company, which assists automotive retail dealers and manufacturers, market and sell new and used vehicles through internet purchase request referral programs together with related dealer marketing products and services and online advertising... More
Industry: Internet Information Providers
Country: United States
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