Shares in magazines firm Future (FUTR) rallied 13.2% to £15.39 on Thursday after the announcement last night of the £140m acquisition of Ti Media, the publisher of titles like Marie Claire UK and Country Life.
Future, which owns publications like Game Radar and Total Film, has seen its fortunes transformed under chief executive Zillah Byng-Thorne, as Shares has covered extensively in the past.
Since her appointment on 1 April 2014 the shares have advanced 1,760%. The strategy has been built on acquiring popular magazine titles and monetising their articles and the connection they have with readers.
This is achieved using a platform which enables it to generate revenue from the specialist content and brands through a mixture of e-commerce, getting content users to click through to partnered retailers, events and online advertising.
DEBT AND NEW SHARES
This latest deal is being funded through both debt and a new share placing which raised £104.4m at £12.75. As a bonus the company is getting a new chief financial officer out of the transaction with the finance head of TI, Rachel Addison, joining Future in the same role when the deal completes, expected to be spring 2020.
It has not all been smooth sailing for Future, the company saw its shares come under significant pressure when equity research firm Stockviews posted an aggressive sell note on the company in June 2019. But for now it seems to have brushed off the criticisms.
These included questions over the quality of earnings and its accounting practices as well as concerns it was alienating its audience by trying to make money out of them.
