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Q2 EPS came in at ($0.88), compared to the consensus estimate of ($0.67). Revenue grew 9% year-over-year to $58.8 million, compared to the consensus estimate of $60.3M.
The company signed a binding letter of intent to combine with Bridge Media Networks. As part of the proposed transaction, Bridge Media Networks’ parent company Simplify Inventions will invest $50 million in cash in the combined entity, of which $25 million will be in the form of common stock and $25 million will be in the form of non-convertible preferred stock. Additionally, The Arena Group will receive a five-year guaranteed advertising commitment of approximately $60 million from a group of consumer brands also owned by Simplify.
The transaction, which is expected to vastly expand its video capabilities in digital streaming, OTT, OTA, CTV, and Free Ad Support Television (FAST) channels, is expected to close in Q4/23, subject to the negotiation of definitive agreements, the completion of due diligence, the approval of The Arena Group’s shareholders, the receipt of any required regulatory approvals and certain other closing conditions.
