Exclusive: YipTV makes takeover offer for MagicJack
YipTV, a Florida-based provider of over-the-top television content, has proposed a $9.50 per share takeover offer for Israeli cloud calling company MagicJack VocalTel (Nasdaq: CALL), Axios has learned. This would represent nearly a 50% premium to where MagicJack stock opened trading this morning.
Small buying big: YipTV is a tiny company, with internal projections showing less than $10 million in expected 2017 revenue,. MagicJack, on the other hand, generated nearly $100 million in revenue last year, has over two million subscriber lines and sells product in around 25,000 retail locations. To finance the transaction, a source says that YipTV has negotiated around a $95 million credit facility from Goldman Sachs. It may also work with an equity sponsor.