CuriosityStream Announces Share Repurchase Plan
CuriosityStream (NASDAQ: CURI) has announced that its Board of Directors has approved a share repurchase program, authorizing the buyback of up to $4 million of its common stock.
The program will involve potentially repurchasing shares through various methods, including open market purchases and privately negotiated transactions, in compliance with federal securities laws.
The company highlighted that repurchases would depend on several factors including stock price, market conditions, and other investment opportunities.
Notably, there is no set expiration date for the program, and it can be modified or discontinued at the company's discretion.
Share repurchase updates will be provided in the company's periodic SEC filings.
- CuriosityStream's share repurchase plan of up to $4 million could potentially increase shareholder value by reducing the number of outstanding shares.
- The flexibility of the repurchase program, without a set expiration date, allows the company to adapt to market conditions as needed.
- Compliance with federal securities laws ensures a level of regulatory oversight and adherence to legal standards.
- The company acknowledges that it cannot predict if or when it will repurchase shares, introducing uncertainty about the program's actual implementation.
- The decision to repurchase shares depends on multiple factors such as market conditions and stock price, making the plan contingent on external variables.
- There is no obligation for the company to buy back any particular amount of stock, which could disappoint some investors anticipating a definite buyback.
Insights
The announcement of a share repurchase program can have several implications for investors. A share repurchase, also known as a stock buyback, is often perceived as a positive signal because it suggests that the company's management believes the stock is undervalued. By reducing the number of outstanding shares, earnings per share (EPS) can increase, potentially making the stock more attractive to investors.
For CuriosityStream, the commitment of
In the short term, the announcement might buoy the stock price as it is often seen as a vote of confidence by the management. In the long term, however, the impact will depend on how effectively the repurchase plan is executed and how well the company performs operationally.
From a market perspective, the share repurchase program signals that CuriosityStream is looking to enhance shareholder value. Such actions can improve investor sentiment, particularly if the company has surplus cash that is not immediately needed for other investments. However, it's important to note that repurchase programs can also indicate that the company lacks viable opportunities for growth investments, which might be a red flag for some investors.
Moreover, the flexible nature of the program means that the company is hedging its bets—committing to buy back shares but not locking itself into a rigid schedule. This approach gives CuriosityStream the ability to adapt to changing market conditions, which could be beneficial in a volatile market environment.
Investors should watch for updates in the company’s Form 10-Q and 10-K filings to see how the repurchase program is progressing and whether it has a material impact on the financial metrics such as EPS, book value per share and overall market valuation.
The Company cannot predict when or if it will repurchase any shares of common stock as such stock repurchase program will depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. This program does not obligate the Company to acquire any particular amount of common stock. The program has no expiration date and may be modified, suspended or discontinued at any time at the Company’s discretion. Information regarding share repurchases will be available in the Company’s periodic reports on Form 10-Q and 10-K filed with the SEC as required by the applicable rules of the Exchange Act.
About Curiosity Inc.
Curiosity Inc. is the entertainment brand for people who want to know more. The global media company is home to award-winning original and curated factual films, shows, and series covering science, nature, history, technology, society, and lifestyle. With millions of subscribers worldwide and thousands of titles, the company operates the flagship Curiosity Stream SVOD service, available in more than 175 countries worldwide; Curiosity Channel, the linear television channel available via global distribution partners; Curiosity University, featuring talks from the best professors at the world's most renowned universities as well as courses, short and long-form videos, and podcasts; Curiosity Now, a free, ad-supported channel; Curiosity Audio Network, with original content and podcasts; and Curiosity Studios, which oversees original programming.
Cautionary Statements Regarding Forward-Looking Information
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, the Company’s plans to repurchase shares of its common stock. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “would,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, that the Company filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2024, and in the Company’s subsequent SEC filings. These risk factors are important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of the Company, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and the Company is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that the Company has filed or will file from time to time with the SEC. In addition to factors previously disclosed in the Company’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to the Company’s ability to maintain and develop new and existing revenue-generating relationships and partnerships or to significantly increase the Company's subscriber base and retain customers; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and the Company’s ability to compete therein; (v) litigation, complaints, and/or adverse publicity; and (vi) privacy and data protection laws, privacy or data breaches, or the loss of data.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611233078/en/
CuriosityStream Investor Relations
Vanessa Gillon
IR@curiositystream.com
Source: CuriosityStream
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