HMTV - HMTV STOCK NEWS

Edenbrook Capital, a major shareholder of Hemisphere Media Group (HMTV), representing nearly 15% of Class A shares, criticized the company’s recent press release regarding its acquisition by Gato Investments. Edenbrook argues the announcement misleadingly implies stockholder approval, noting that over 57% of Class A shareholders voted against the deal. The firm claims this acquisition undervalues Hemisphere and exemplifies poor corporate governance, urging the Board to explore better alternatives. They assert the decision disproportionately benefits insiders while sidelining public shareholders.

On September 8, 2022, Hemisphere Media Group (HMTV) announced that its stockholders have approved the acquisition by Gato Investments LP, part of Searchlight Capital Partners. Each stockholder will receive $7.00 per share in cash. The merger's consummation is anticipated shortly, pending customary closing conditions, after which HMTV's common stock will be delisted from Nasdaq. This acquisition aims to bolster Hemisphere's position in the fast-growing U.S. Hispanic and Latin American media markets.

Edenbrook Capital, a significant shareholder in Hemisphere Media Group (HMTV), has expressed concerns regarding the proposed Insider Takeover led by Searchlight Capital. Edenbrook claims the deal undervalues the company and accuses the Special Committee of neglecting their fiduciary responsibilities. The firm highlights that Hemisphere is set to sell its streaming service Pantaya for $115 million, less than the $200 million offer from another company. Edenbrook argues that public shareholders would fare better if Pantaya were sold to independent buyers, not insiders.

Hemisphere Media Group (HMTV) reported a 7% increase in net revenues, reaching $54.2 million for Q2 2022, despite a 1% decline in subscriber and advertising revenue. For the six months, revenues surged 17% to $103 million, mainly due to the acquisition of Pantaya. However, operating expenses soared by 30% and 46% for Q2 and the first half of 2022, respectively, leading to a net loss of $3.9 million for Q2. Adjusted EBITDA also fell to $10.8 million as operating losses at Pantaya impacted performance. The company has a debt of $251 million and is in the process of an acquisition by Gato Investments.

On July 28, 2022, Hemisphere Media Group (NASDAQ: HMTV) announced preliminary financial results for Q2 2022, indicating a net revenue range of $53 million to $55.5 million, compared to $50.5 million for Q2 2021. WAPA's performance was strong, capturing 24 of the top 30 rated programs among Adults 25-54, with growth in advertising revenue. The company reported an operating loss of $3.1 million, up from a loss of $1.0 million year over year. As of June 30, 2022, Hemisphere's debt was approximately $251 million, with cash reserves of $28.9 million.

Kaskela Law LLC is investigating Hemisphere Media Group (HMTV) on behalf of its shareholders following the company's acquisition agreement with Gato Investments for $7.00 per share. Edenbrook Capital, owning 15% of HMTV shares, claims the deal is unfair and undervalues the company, estimating shares should be worth between $16 and $23. The investigation aims to assess the fairness of the transaction and whether directors breached their fiduciary duties.

Edenbrook Capital, a major shareholder of Hemisphere Media Group (HMTV), has raised concerns about the proposed Insider Takeover of the company at $7 per share, arguing it undervalues Hemisphere significantly. Edenbrook's analysis suggests the company has a fair equity value of $16-$23 per share, based on a levered free cash flow of $66 million and a valuation multiple between 10-14.3x. The letter claims the Insider Takeover is riddled with conflicts of interest, benefiting insiders disproportionately and undermining public shareholders.

Edenbrook Capital, a significant stakeholder in Hemisphere Media Group (NASDAQ: HMTV), owning around 14.94% of A shares, expressed concerns over a proposed insider-led takeover at $7.00 per share, which they deem significantly undervalued. They argue the true equity value should be around $12.00 per share, based on a detailed valuation analysis revealing a $485 million equity value versus the offered $282 million. Edenbrook highlights potential conflicts of interest and urges the board to secure a fairer deal that reflects the company's growth potential, especially regarding its streaming platform, Pantaya.

Hemisphere Media Group, Inc. (HMTV) announced the adjournment of its Annual Meeting of Stockholders originally set for May 12, 2022, due to several senior management team members being exposed to COVID-19. The meeting will now take place on May 31, 2022, at 9:00 a.m. Eastern Time in Miami. Despite the adjournment, HMTV continues to solicit stockholder votes on key proposals. Approximately 97% of outstanding shares had been voted prior to the adjournment. Stockholders of record as of March 23, 2022, are urged to vote by May 30, 2022.