AirMedia Group Inc. (NASDAQ:AMCN) announced that it entered into an Amendment No. 1 to the Agreement and Plan of Merger (the “Merger Agreement Amendment”) to amend that certain Agreement and Plan of Merger (the “Merger Agreement”), dated September 29, 2015, by and among the Company, AirMedia Holdings Ltd. (“Parent”) and AirMedia Merger Company Limited (“Merger Sub”), a wholly owned subsidiary of Parent.
Under the terms of the Merger Agreement, either the Company or Parent could terminate the Merger Agreement if the merger contemplated by the Merger Agreement (the “Merger”) has not been completed by the date of June 28, 2016 (the “Termination Date”). The Merger Agreement Amendment extends this Termination Date to December 31, 2016. In connection with the proposed Merger, the Company has filed a transaction statement on Schedule 13E-3, a preliminary proxy statement and related materials with the Securities and Exchange Commission, and expects to file an amendment to the Schedule 13E-3 and updated proxy materials with the SEC in a timely manner. The amendment to the Schedule 13E-3 will include as an exhibit to such filing the Merger Agreement Amendment.
AirMedia Equity Analysis
AirMedia Group Inc. (NASDAQ:AMCN) opened trading today as $3.50 and is trading in the range of 3.06-3.77 today. AirMedia’s current market cap stands at $219.18 Million.
AirMedia is currently covered by 1 Wall Street analysts. The mean target price is $6.90 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.0 which is based on 1 Buy ratings.
The current quarter EPS revenue estimates is 252.09M. Sales are expected to grow at a 401.80% rate.
AirMedia Group Inc. operates out-of-home advertising platforms primarily in the People’s Republic of China. The company operates a network of digital TV screens on planes operated by seven airlines; traditional media in airports, such as light boxes, billboards, and painted advertisements; and gas station media displays, as well as other outdoor media displays out of the air travel advertising sector. It also displays non-advertising content, such as weather, sports, and comedy clips; and television programs, including documentaries and hidden camera type reality shows from other third-party content providers. In addition, the company holds concession rights to operate various traditional advertising media comprising billboards, light boxes, and other media platforms outside the air travel sector. As of March 31, 2015, its programs were placed on digital TV screens on planes operated by 7 airlines; and it operated 454 light boxes and billboards in 7 airports. The company also operates approximately 22 unipole signs and other outdoor media in locations throughout Beijing; and 6,966 tablets on high-speed trains in China. AirMedia Group Inc. was founded in 2005 and is headquartered in Beijing, the People’s Republic of China.