Matomy Media

The company was incorporated in 2006 and launched in 2007 as AdsMarket.{{cite news|

url=http://www.globes.co.il/en/article-backed-wants-to-make-consumer-loans-to-young-borrowers-1001179474|title=Israel's Backed targets US online loans market|newspaper=Globes|date=5 March 2017|access-date=23 January 2018}} The company was founded in Israel by Ofer Druker, Adi Orzel and Kfir Moyal.{{cite web| url=http://www.globes.co.il/en/article-1000879602 |title=Matomy plans London IPO at $400-500m valuation |publisher=Globes English |date=2013-09-15 |accessdate=2014-05-01}} The company joined the IAB QAG Certified Network in 2011.{{cite web|url=http://www.matomy.com/about-matomy-group#about-matomy-media-group |title=About Matomy Media Group |publisher=Matomy.com |date= |accessdate=2014-05-01}}

Matomy was advised by Ilan Shiloah since its inception,{{cite news|url=http://www.globes.co.il/en/article-matomy-to-lay-off-10-of-employees-1001187854|title=Matomy to lay off 10% of employees|newspaper=Globes|date=9 May 2017|access-date=25 January 2018}} and he took on the role of chairman until November 2015.{{cite web|url=https://www.campaignlive.co.uk/article/matomy-group-appoints-former-itv-chief-rupert-howell-non-executive-chairman/1374490|title=Matomy Group appoints former ITV chief Rupert Howell as non-executive chairman|date=25 November 2015|access-date=7 February 2018}}

Matomy became a publicly traded company on the High Growth Segment of the London Stock Exchange's Main Market in July 2014.{{cite web|last1 = Armstrong|first1 = Ashley|title = Matomy uses High Growth Segment for second listing attempt|url = https://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/10953669/Matomy-uses-High-Growth-Segment-for-second-listing-attempt.html|website = www.telegraph.co.uk/|publisher = Telegraph|accessdate = 2015-01-07}} Following its initial public offering, Matomy received an $82 million investment from global advertising holding company Publicis Groupe, which acquired 24.9% of Matomy's ordinary shares.{{cite news|last1 = Gallivan|first1 = Rory|title = Publicis to Buy Stake in Digital-Advertising Technology Company Matomy Media|url = https://www.wsj.com/articles/publicis-buys-stake-in-digital-advertising-technology-company-matomy-media-1413183774|newspaper = Wall Street Journal|date = 13 October 2014|accessdate = 2015-01-07}}

Matomy dual-listed on the Tel-Aviv Stock Exchange in February 2016.{{cite news|url=https://www.reuters.com/article/matomy-group-ma/online-ad-firm-matomy-considering-options-including-possible-deal-idUSL8N1CO0ZF|title=Online ad firm Matomy considering options, including possible deal|newspaper=Reuters|date=18 October 2016|access-date=25 January 2018}}

Matomy grew by investing in companies within the advertising domain, most notably Team Internet (2014), Mobfox (2014) and Optimatic (2015).

Matomy was led by Ofer Druker from its inception until April 2017, at which point he stepped down at the request of activist hedge fund Brosh Capital, who thought that the company was being mismanaged. Ofer was replaced by Sagi Niri.{{Cite news|url=https://www.reuters.com/article/matomy-group-ceo/israeli-online-ad-firm-matomys-cfo-to-replace-druker-as-ceo-idUSL8N1HL2T1|title=Israeli online ad firm Matomy's CFO to replace Druker as CEO|date=2017-04-13|work=Reuters|accessdate=2017-11-03}} Brosh Capital also requested that Matomy employee Nir Tarlovsky and Brosh Capital employee Amir Efrati be added to the board of directors, which was approved.{{cite web|url=https://markets.ft.com/data/announce/detail?dockey=1323-12986134-46F4MB0K0TST2HFR43NQ0B88MT|title= Matomy Media Group - Notice of EGM|date=30 September 2016|access-date=8 February 2018}}

In May 2017, the company announced that it would focus on just three of its products: Team Internet (domain monetization), Mobfox (in-app advertising) and Optimatic (video advertising).{{cite web|url=https://www.investegate.co.uk/matomy-media-group--mtmy-/rns/matomy-announces-new-strategic-focus/201705080844074454E/|title=MATOMY ANNOUNCES NEW STRATEGIC FOCUS|date=8 May 2017|access-date=6 September 2018}}

The partial purchase of Team Internet in 2014 allowed the existing shareholders to sell their remaining stakes to Matomy at set intervals, with a valuation based on the performance of Team Internet. The existing shareholders were the three founders of Team Internet: Nico Zeifang, Mario Witte and Stefan Wiegard, equal partners in a holding company called 'Rainmaker'.{{cite web|url=https://www.domainsherpa.com/wp-content/pdf/Nico-Zeifang-ParkingCrew-on-DomainSherpa.pdf|title=How 3 Friends Bootstrapped and Profitably Built ParkingCrew.com and DNTX.com for Themselves and Their Customers - With Nico Zeifang|access-date=18 December 2018}} In the case that Matomy had insufficient funds, the founders would be able to buy back their shares at a 40% discount to the purchase price.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001262174|title=לאחר הקריסה: התרחישים העומדים בפני מטומי, נושיה ובעלי מניותיה|newspaper=Globes|date=26 November 2018|access-date=27 November 2018|last1=ולדהורן|first1=שירי חביב}}

Team Internet had grown significantly, with a valuation of $1.25M in 2012 growing to $185M in 2017.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001222376|title=Matomi raised NIS 103 million in convertible bonds|newspaper=Globes|date=5 February 2018|access-date=28 February 2018|last1=ולדהורן|first1=שירי חביב}} In December 2018, the then CEO Sagi Niri negotiated with the founders to fix the purchase of the remaining 20% of Team Internet to be earlier than required, and fixed at a premium of the 2017 earnings, rather than based on later earnings.{{cite web|url=https://www.proactiveinvestors.co.uk/LON:MTMY/Matomy-Media/rns/LSE20171228182745_13479640|title=Matomy Media Group- Update|date=28 December 2017|access-date=27 November 2018}} The agreement also included a distribution of capital from Team Internet to shareholders, including Matomy, so that Matomy could fund the purchases.

In January 2018, Niri stepped down, in order to "pursue an offer that cannot be refused" with Teddy Sagi. Niri's ten-month tenure oversaw the disposal of non-core assets as well as the laying off of 150 staff in order to focus on just two parts of the company: MobFox and Team Internet.{{cite news|url=https://www.haaretz.com/israel-news/business/tase-indexes-mixed-in-tuesday-trading-1.5729979|title=TASE Indexes Mixed in Tuesday Trading|newspaper=Haaretz|date=10 January 2018|access-date=5 March 2018}} Niri was replaced by Liam Galin, the former CEO of Flash Networks.{{cite web|url=https://www.calcalistech.com/ctech/articles/0,7340,L-3729237,00.html|title=Digital Marketing Company Matomy Media Replaces CEO after Ten Months|date=9 January 2018|access-date=25 January 2018}} At the same time, two of the three founders of Team Internet left the company.{{cite web|url=https://de.linkedin.com/in/stefan-wiegard?trk=pub-pbmap|title=Stefan Wiegard|date=18 December 2018|access-date=18 December 2018}} The Team Internet CEO and founder, Nico Zeifang, was replaced by Markus Ostertag.{{cite web|url=https://de.linkedin.com/in/ostertag?trk=pub-pbmap|title=Markus Ostertag|date=18 December 2018|access-date=18 December 2018}}

Following the imposition of stricter quality requirements from video advertisers, the revenue of Optimatic fell significantly and was closed in April 2018.{{cite web|url=https://www.campaignlive.co.uk/article/ad-fraud-warning-publicis-backed-digital-media-company-matomy-struggles/1491476|title=Ad fraud warning as Publicis-backed digital media company Matomy struggles|date=30 August 2018|access-date=6 September 2018}} The company also divested of some non-compliant traffic from Team Internet and Mobfox, meaning that the earnings of Team Internet were actually much lower than in 2017.

In February 2018, Matomy raised $30M in convertible bonds in order to fund the purchase of the remaining share options held by Team Internet.{{cite web|url=https://www.calcalistech.com/ctech/articles/0,7340,L-3729372,00.html|title=Digital Marketing Company Matomy Wants to Raise $25 million in Convertible Bonds|date=10 January 2018|access-date=2 February 2018}} The bonds had a duration of three years, bear an interest of 5.5%, and have a conversion price of NIS 4.26.{{cite web|url=http://www.talniri.co.il/marketnews/article.asp?mp=156&cat=1&id=86351|title=ביקושי יתר משמעותיים בהנפקת איגרות החוב להמרה של מטומי|date=1 February 2018|access-date=28 February 2018}} Within a few months, the yields on the company's bonds entered junk bond territory, trading at a significant discount to their face value.{{cite web|url=https://www.calcalist.co.il/markets/articles/0,7340,L-3749370,00.html|title=האג"ח בתשואת זבל, התוצאות רעות - אבל מנכ"ל מטומי מעודד|date=8 November 2018|access-date=15 November 2018}}

In August 2018, Matomy sold Whitedelivery to 1029 Holdings Inc. However, the buyer subsequently ran into financial difficulties, meaning that Matomy lost the income from this unit without benefiting financially.{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTMY/13919992.html|title=Matomy Media Group Third Quarter 2018 Financial Results|date=1 January 2019|access-date=4 February 2019}}

In November 2018, Matomy sold Mobfox to Teddy Sagi, the person to whom Sagi Niri had resigned to. This left Team Internet as Matomy's only subsidiary. The CEO Liam Galin said that the sale was partially to fund the acquisition of the remaining shares of Team Internet, and that he was trying to alter the terms of that acquisition, which was due at the end of the same month.{{cite web|url=https://www.morningstar.co.uk/uk/news/AN_1542974499807317500/matomy-seeks-to-alter-terms-for-buying-remaining-team-internet-stake.aspx|title=Matomy Seeks To Alter Terms For Buying Remaining Team Internet Stake|date=23 November 2018|access-date=27 November 2018}} Later in the month, the company scheduled a meeting with the company's bondholders in order to seek new terms for the bonds.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001261990|title=ניירות הערך של מטומי קורסים: המשקיעים בחברת הפרסום הדיגיטלי "מריחים" הסדר חוב|newspaper=Globes|date=25 November 2018|access-date=27 November 2018|last1=ולדהורן|first1=שירי חביב}} At this point, the bonds were trading at over a 50% discount to the face value, and the shares had fallen by 95% in the previous two years.

Some bond holders proposed an immediate repayment of the bonds, but this was rejected by a majority of bond holders.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001263195|title=Matomy reports: Bond holders, founders of the subsidiary and shareholders are toughening their positions against the company|newspaper=Globes|date=3 December 2018|access-date=18 December 2018|last1=ולדהורן|first1=שירי חביב}} Instead, a proposal that the bond holders appoint a trustee to negotiate the terms on the bonds with Matomy was accepted.

The new bond terms were provisionally agreed in January 2019. These terms increased the interest rate to 7%, delayed the payment schedule and enabled prepayment without penalty. In return, the main shareholders agreed to invest $10 million by way of a rights issue, with a promise to invest a further $2 million in bonds if the rights issue to the other shareholders raised less than $2 million. The owners of Team Internet, Rainmaker, also agreed to reduce their expected payment from $18.5 million to $13.5 million.{{cite web|url=http://www.morningstar.co.uk/uk/news/AN_1548846391098854900/matomy-media-bondholders-agree-to-companys-proposed-repayment-plan.aspx|title=Matomy Media Bondholders Agree To Company's Proposed Repayment Plan|date=30 January 2019|access-date=1 February 2019}}

In March 2019, the management structure was slimmed down, after the CEO Liam Galin stepped down to pursue a new venue and was replaced by Sami Totah, a partner at Viola Group, a shareholder of Matomy.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001276933|title=מנכ"ל מטומי ליעם גלין התפטר; סמי תותח ימלא את מקומו|newspaper=Globes|date=6 March 2019|access-date=7 March 2019|last1=שלו|first1=שי}} The company also replaced its resigned in house legal advisor with the law firm Meitar Liquornik Geva Leshem Tal. The company office was closed and the company address was changed to that of the law firm. To reduce costs, the market maker for their Tel Aviv securities was discharged from the end of June 2019.{{cite web|url=https://maya.tase.co.il/reports/details/1232524|title=אי.בי.אי תחדל לפעול כעושה שוק במטומי ובמטומי אג א מיום 1.7.19|date=30 May 2019|access-date=30 May 2019}}

In April 2019, after no progress had been made by Matomy towards a bond renegotiation and rights issue, the minority shareholders of Team Internet exercised their option to buy back all their shares from Matomy at a 40% discount to the price paid.{{cite web|url=https://www.sharesmagazine.co.uk/news/market/6376671/Matomy-Media-receives-36m-bid-for-Team-Internet-stake|title=Matomy Media receives $36m bid for Team Internet stake|date=5 April 2019|access-date=5 April 2019}} This totalled $36 million, which would first be used to repay the bondholders. Bondholders approved the offer and also approved bond repayment at par value, totalling NIS 101 million ($28 million), leaving a surplus of $10 million for Matomy.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001282067|title=מחזיקי האג"ח של מטומי אישרו פה-אחד את מכירת החברה הבת טים אינטרנט ל-Rainmaker|newspaper=Globes|date=14 April 2019|access-date=25 April 2019|last1=ולדהורן|first1=שירי חביב}}{{cite journal|url=https://www.themarker.com/markets/1.7135465|title=מטומי זינקה ב-21% - אף על פי שעסקת טים אינטרנט לא נסגרה|journal=TheMarker|date=17 April 2019|access-date=8 May 2019}} Matomy also confirmed that a German tax refund of approximately $4 million would remain payable to Matomy rather than Team Internet. The deal would leave Matomy with a cash balance of approximately $19 million and no business activities.

In June 2019, Matomy reported that the minority shareholders of Team Internet wanted to re-assess their offer for the whole of Team Internet after a handful of accounts were deactivated by Team Internet due to quality issues.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001290399|title=הצרות של מטומי נמשכות: קשיים בעסקת מכירה שאמורה הייתה להבטיח את תשלום האג"ח|newspaper=Globes|date=20 June 2019|access-date=24 June 2019|last1=ולדהורן|first1=שירי חביב}} Whilst the offer was in jeopardy, the company proposed that current and former executives should be awarded bonuses.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001294479|title="עם אהבה וללא חרטה": אלטשולר שחם פתחה את יום המסחר בת"א|newspaper=Globes|date=22 July 2019|access-date=1 January 2020|last1=דובר|first1=שירי|last2=ולדהורן|first2=שירי חביב}} These proposals were dropped within 24 hours at the request of the bondholders,{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001294718|title=נאמן האג"ח התנגד, ומטומי הסירה את ההצעות לחלק בונוסים לבכירים לשעבר|newspaper=Globes|date=23 July 2019|access-date=1 January 2020|last1=ולדהורן|first1=שירי חביב}} but would reappear later, following the eventual sale of Team Internet. In August 2019 the offer for Team Internet was dropped,{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001298126|title=חוזרים למתווה של הסדר חוב? בוטלה מכירת החברה הבת של מטומי תמורת 36 מיליון דולר|newspaper=Globes|date=22 August 2019|access-date=28 August 2019|last1=ולדהורן|first1=שירי חביב}} but in the same month, Matomy reported that it had received multiple non-binding offers for Team Internet that would likely enable it to meet all its financial obligations.{{cite web|url=https://www.proactiveinvestors.co.uk/companies/news/901626/matomy-media-receives-approaches-from-parties-interested-in-buying-its-team-internet-stake-901626.html|title=Matomy Media receives approaches from parties interested in buying its Team Internet stake|date=28 August 2019|access-date=28 August 2019}}

Team Internet was sold in December 2019 to CentralNic for $48M, comprising $45M of cash and $3M in shares.{{cite web|url=https://domaininvesting.com/centralnic-acquires-team-internet-ag-for-up-to-48-million-usd/|title=CentralNic Acquires Team Internet AG for up to $48 million (USD)|date=15 November 2019|access-date=16 November 2019}}{{cite news|url=https://en.globes.co.il/en/article-matomy-reported-selling-team-internet-for-46m-1001307560|title=Matomy reports selling Team Internet for €46m|newspaper=Globes|date=17 November 2019|access-date=18 November 2019}}{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001312202|title=אג"ח מטומי זינקה ב-117% מהשפל באוגוסט: תחזיר את מלוא החוב לאחר מכירת פעילותה ב-46 מיליון אירו|newspaper=Globes|date=24 December 2019|access-date=31 December 2019|last1=סימון|first1=גיא בן|last2=ולדהורן|first2=שירי חביב}} The first payment of $44M, together with $3M of Matomy's cash, was used to purchase the final 10% of Team Internet from Rainmaker and to repay the bondholders in full. Matomy is due to receive a second payment six months after the acquisition of $1.8M, and a third payment of $600K fifteen months after the acquisition. Matomy also received 3,911,650 shares in CentralNic, subject to a lock-up period of 12–18 months. Matomy also received interest whilst the deal was being finalised, of approximately $800K.{{cite web|url=https://polaris.brighterir.com/public/centralnic/news/rns/story/x880pjx|title=Acquisition of web services company Team Internet AG for up to US$48 million and trading update for Q3 2019|date=15 November 2019|access-date=18 November 2019}} This transaction left Matomy with no active business.

On the day preceding the sale of Team Internet, director Nir Tarlovsky sold his stake in Matomy,{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTMY/14369802.html|title=Director/PDMR Shareholding|date=3 January 2020|access-date=3 January 2020}} followed the day after by ex-director Ilan Shiloah.{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTMY/14363990.html|title=TR-1: Standard form for notification of major holdings|date=27 December 2019|access-date=3 January 2020}} On the same day a hostile takeover was announced by Kfir Silberman.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001312135|title=כפיר זילברמן מבקש להשתלט על מטומי: דורש למנות את אלי יורש כדירקטור מטעמו|newspaper=Globes|date=24 December 2019|access-date=1 January 2020|last1=סימון|first1=גיא בן}} He sent a letter to the company declaring that he had taken a 5% stake in the company and requested that no action be taken in the company's assets until the directors of Medigus, an Israeli Medical device maker that Silberman controlled, had been made directors of Matomy. Separately, Globes reported that Silberman was negotiating with Publicis and other shareholders to buy their stakes. Silberman and Medigus had previously acquired the cash shell Intellisense for the purpose of listing their subsidiary ScoutCam.{{cite web|url=https://techtime.co.il/2019/11/03/medigus-25/|title=ScoutCam תונפק באמצעות שלד בורסאי|date=3 November 2019|access-date=19 April 2020}}

The company suppressed publication of the official disclosure of Silberman's stake building for eight days,{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTMY/14366272.html|title=TR-1: Standard form for notification of major holdings|date=31 December 2019|access-date=1 January 2020}} and did not publicly respond to Silberman, instead proposing that shareholders award bonuses to the current and former management team.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001313258|title=לאחר החזר החוב למחזיקי האג"ח: במטומי מבקשים להעניק בונוס לבכירים לשעבר|newspaper=Globes|date=1 January 2020|access-date=1 January 2020|last1=ולדהורן|first1=שירי חביב}} These were subsequently approved by shareholders.{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTMY/14411599.html|title=Results of Extraordinary General Meeting of Matomy Media Group Ltd.|date=5 February 2020|access-date=13 February 2020}}

On 13 February 2020, the Israeli medical device maker Medigus announced that they were in negotiations to buy 24.99% of the company from other shareholders.{{cite web|url=https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTMY/14423080.html|title=Re: Negotiation with certain shareholders of the Company for selling their shares|date=13 February 2020|access-date=13 February 2020}} Four days later, Viola announced that they had sold their stake, and that the chairman of Matomy, who was also a partner at Viola, would be resigning from Matomy.{{cite news|url=https://www.globes.co.il/news/article.aspx?did=1001318702|title=אקורד סיום: ויולה מכרה את יתרת המניות שלה במטומי; סמי תותח פרש מהחברה|newspaper=Globes|date=17 February 2020|access-date=18 February 2020|last1=ולדהורן|first1=שירי חביב}} The following day, Medigus announced that they had purchased 2.3% of the company at a premium of 20%, with an intention to purchase 22.7% more at the same price.{{cite web|url=https://www.morningstar.co.uk/uk/news/AN_1582048093741034400/matomy-media-says-talks-continue-with-investors-after-medigus-buys-in.aspx|title=Matomy Media Says Talks Continue With Investors After Medigus Buys In|date=18 February 2020|access-date=18 February 2020}} These shares were purchased from Publicis on 25 March 2020. A shareholder meeting was convened to vote on replacing the Matomy management team with directors from Medigus.

Team Internet is the parent company of ParkingCrew and Tonic (formerly DNTX), and is a Munich-based domain parking company launched in 2010 by Nico Zeifang, Stefan Wiegard and Mario Witte. The founders had accumulated a portfolio of 60,000 domains but were not satisfied with the domain monetization platforms on offer, in particular the fact that large advertisers ignored low traffic sites, so they created their own advertising exchange, DNTX. Domain monetization was offered as a service to the public in 2012. By 2018, the company owned 48,000 domains.

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• {{Official website|http://www.matomy.com/|name=Matomy Media Group}}

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Category:Marketing companies

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Category:Marketing companies established in 2007

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