What Happened: Flyer Reveals Vancouver-Based BBTV Seeks To Raise $ 172 Million By Going Public
Why it matters: IPO would allow BBTV to buy BroadbandTV from controlling shareholder
According to a prospectus released Thursday, October 8 by BBTV Holdings Inc., the co-owner of one of Vancouver’s largest media and technology companies aims to raise $ 172 million in an initial public offering (IPO ).
The ultimate goal is for BBTV, a holding company, to use the proceeds from the takeover of Vancouver-based BroadbandTV Corp., which is majority owned by Luxembourg group RTL.
The European media company, a subsidiary of Germany’s Bertelsmann SE & Co. KGaA, invested $ 36 million in BBTV in 2013 in exchange for a 51% stake.
BBTV controls the remaining 49% of BroadbandTV, which is best known for developing a platform that helps create, distribute and monetize video content for online consumption.
It has just over 350 employees, of which 266 are in full-time positions.
Shahrzad Rafati, former BIV Forty Under 40 winner, is CEO and Director of BBTV and BroadbandTV.
If successful, the IPO and subsequent buyout would give more control of BroadbandTV to Rafati, who founded the company in 2005 and also serves on the board of directors of Vancouver-based Hootsuite Inc.
The IPO is led by Canaccord Genuity Corp. and Scotia Capital Inc.
The prospectus reveals that BBTV’s revenue grew from $ 33 million per year in 2014 to $ 372 million in 2019.
The company calculates that annual revenue for 2020 is set at $ 388 million based on funds received in the 12 months between the second quarter of 2019 and the second quarter of 2020.
BBTV saw around 439 billion views on its platform between June 2019 and June 2020, and the company claims it has the second-highest number of monthly viewers among all digital platforms: 596 million compared to 1.118 billion. Google.
“Our business, like the advertising industry as a whole, experiences seasonal fluctuations due to increased advertising spend around holiday periods, and in particular, historically, we have generated higher revenue in the fourth quarter. in connection with the winter holidays ”, the States prospectus.
While BBTV said the pandemic had moved it to a remote workforce with little impact on productivity, the company acknowledged that its revenue per thousand views has declined year on year. due to the initial sharp decline in global ad spending, including digital advertising, linked to COVID-19. “