Nexxen Seeks Approval For $20 Mln Share Buyback To Invest $35 Mln In VIDAA

(RTTNews) - Nexxen International Ltd. (NEXN), an advertising technology platform, on Friday announced that it is seeking approval to launch a new $20 million ordinary share buyback program, to begin after its current program ends.

As of July 31, about $7.2 million remained under its current ordinary share buyback authorization, which is expected to be completed before the scheduled end date of November 19.

As previously disclosed, alongside plans for a new buyback program, the company will invest an additional $35 million in VIDAA, raising its equity stake to about 6%.

The investment will back VIDAA's North American CTV expansion and is expected to boost the long-term value of the company's exclusive data and advertising monetization rights, as well as its overall investment.

The move aims to take advantage of what the company sees as an opportunity to repurchase shares at a discounted valuation, signaling confidence in its long-term outlook.

The company said its solid cash position, backed by its profitable, cash-generating model, provides flexibility to pursue a balanced capital allocation strategy focused on long-term growth and enhancing shareholder value.

The company is also evaluating targeted strategic opportunities smaller in scale than the Amobee acquisition to grow its monetizable data assets, strengthen AI capabilities, boost growth in its core U.S. and international businesses, and enter new high-growth markets.

VIDAA is a smart TV operating system and content platform originally developed by Hisense.

On Thursday, Nexxen International closed trading 5.76% lesser at $9.33 on the Nasdaq.